Wednesday, June 6, 2018

The 167 New York Companies With Market Caps of at Least $1 Bil Posted March 2018 Quarter Total Pretax Income of $70.7 Bil, Up 12% From Their March 2017 Quarter, Precisely Matching the Total Pretax Income Growth of all 1,820 US Companies With Similar Market Caps ....................................................................................... The Problem Here is That This 12% Reported Earnings Growth Was Just Horrible From an Earnings Quality Perspective..... Let Me Explain ........................................................................................ Of the Total Pretax Income of $70.7 Bil, 65 % of It Relates to NY's 81 Financial Cos Which Made Total Pretax Income of $45.9 Bil in the March 2018 Quarter, Up a Huge 21% From the March 2017 Quarter ........................................................................................ This Very High 21% Financial Companies Earnings Growth Was Mainly Attributable to the 25 NY Trump Administration-Favored Tax-Free REITs, Whose March 2018 Quarter Pretax Income Grew By an Off-the-Charts 153%. So is This 153% Reported Growth Real March 2018 Quarter Economic Income Growth? Not Even Close To It. It is the March 2018 Quarter Realization Upon Property Sale of the Appreciation of Real Estate Properties Which Predominately Occurred in the Many Years Prior to 2018. ........................................................................................ Also, Only Two Financial Subsectors Comprised $30.1 Bil or 66% of the Total Pretax Income (PTI) of all 81 NY Financial Companies of $45.9 Bil ..... The 10 NY Banks (Total PTI of $19.1 Bil, Up 15%) and the 21 Investments-Related Financial Cos (Total PTI of $11.0 Bil, Up 18%). The Majority of the Earnings Growth of These Two Financial Subsectors (15% and 18%) was Due Directly To the US Fed Raising Short-term Interest and These Financial Companies Greedily Sharing Very Little of Their Resultant Much Higher Interest Revenues With Their Customers ........................................................................................ Further, Due To the Volatile Interest Rate Environment Occurring During the March 2018 Quarter, Not a Small Number of These Financial Companies Recorded in Their Pretax Income in the March 2018 Quarter Huge, and Some Even Enormous, Amounts of Both Realized and Unrealized Gains From the Change in the Value of Their Interest-Rate Swaps and Other Financial Derivatives ....................................................................................... Which Takes Me To the Non-Financial NY Companies ........................................................................................ The NY Telecom Giant Verizon Received the Third Most Tax Breaks From the Trump Tax Cuts Act, With Only Berkshire Hathaway and Ethically-Challenged AT&T Receiving More in Tax Largesse. Verizon Posted March 2018 Quarter Pretax Income of $6.1 Bil, Up 17% From the March 2017 Quarter and After-Tax Net Income Up a Substantially Higher 31%. But the Earnings Quality Sucked. Verizon Had a Discretionary Loss on Early Debt Retirement of $249 Mil in the March 2018 Quarter and of a Much Higher $848 Mil in the March 2017 Quarter. Absent This Discretionary Reported Earnings Strategy, Verizon's March 2018 Quarter As-Adjusted Pretax Income in the March 2018 Quarter Increased By Only 4.5% Over the March 2017 Quarter, Much Lower Than the Reported March 2018 Reported Pretax Income Increase of 17% ........................................................................................ So, What About the Other 85 NY Non-Financial Companies in Many Different Sectors ..... The Envy of the World? Well, Their Total Pretax Income Was $18.8 Bil in the March 2018 Quarter, a Very Disappointing Decline of 7% From the $20.3 Bil Earned in the March 2017 Quarter.

From a review of SEC filings, the below chart shows the US GAAP Pretax Income (Loss) From Continuing Operations, the US GAAP Net Income (Loss) From Continuing Operations and the related US GAAP Income Tax Expense for the March 2018 and 2017 Quarters for all US  Companies including both Partnerships and REITs which are Headquartered in the US State of New York with March 2018 Quarter Ends, with stock market caps above $1 Bil recently and which have released their March 2018 Quarter Earnings by June 1, 2018.  

I will update this quarterly earnings chart later for Companies with April 2018 and May 2018 Quarter End Earnings.
 US GAAP   US GAAP   US GAAP   US GAAP 
 US GAAP   US GAAP   Effective   Effective  Pretax Net
 US GAAP   Income   US GAAP   US GAAP   Income   US GAAP   Income   Income  Income Income
New York Companies Pretax Tax Net Pretax Tax Net Tax Tax % Change % Change
Market Caps At Least $1 Bil Income Expense Income Income Expense Income Rate Rate March Qtr March Qtr
Releasing March 2018 Qtr  March Qtr March Qtr March Qtr March Qtr March Qtr March Qtr March Qtr March Qtr 2018 2018
 Earnings By June 1, 2018 2018 2018 2018 2017 2017 2017 2018 2017 vs 2017 vs 2017
mils $ mils $ mils $ mils $ mils $ mils $
Financial Cos
Banks
JPMorgan Chase      10,662        1,950        8,712        8,341        1,893        6,448 18.3% 22.7% 28% 35%
Citigroup        6,090        1,441        4,649        5,981        1,863        4,118 23.7% 31.1% 2% 13%
Bank of New York Mellon        1,444           282        1,162        1,206           269           937 19.5% 22.3% 20% 24%
M&T Bank Corp           458           105           353           518           169           349 22.9% 32.6% -12% 1%
New York Community Bancorp           144             38           106           164             60           104 26.4% 36.6% -12% 2%
Sterling Bancorp           128             29             99             57             18             39 22.7% 31.6% 125% 154%
Community Bank System             52             12             40             36             10             26 23.1% 27.8% 44% 54%
Signature Bank             47             13             34           189             55           134 27.7% 29.1% -75% -75%
NBT Bancorp             33               7             26             28               8             20 21.2% 28.6% 18% 30%
Tompkins Financial             26               6             20             23               7             16 23.1% 30.4% 13% 25%
Total all 10 Banks      19,084        3,883      15,201      16,543        4,352      12,191 20.3% 26.3% 15% 25%
Investments-Related
Morgan Stanley        3,420           714        2,706        2,808           815        1,993 20.9% 29.0% 22% 36%
Goldman Sachs        3,419           587        2,832        2,539           284        2,255 17.2% 11.2% 35% 26%
BlackRock        1,359           265        1,094        1,136           268           868 19.5% 23.6% 20% 26%
Blackstone Group LP           897             55           842        1,059             57        1,002 6.1% 5.4% -15% -16%
KKR & Co LP           621             18           603           838             40           798 2.9% 4.8% -26% -24%
Icahn Enterprises LP           479             56           423          (134)             26          (160) 11.7% -19.4% 457% 364%
Ares Capital Corp           242              -             242           118              -             118 0.0% 0.0% 105% 105%
Lazard Ltd           186             24           162           150             40           110 12.9% 26.7% 24% 47%
Evercore           115               5           110           113             18             95 4.3% 15.9% 2% 16%
Alliance Bernstein Holding LP             66               8             58             50               6             44 12.1% 12.0% 32% 32%
MarketAxess Holdings             61             13             48             55             13             42 21.3% 23.6% 11% 14%
Moelis & Co             57               3             54             46               7             39 5.3% 15.2% 24% 38%
Prospect Capital             52              -               52             19              -               19 0.0% 0.0% 174% 174%
Cohen & Steers             37               8             29             36             13             23 21.6% 36.1% 3% 26%
New Mountain Finance             24              -               24             30              -               30 0.0% 0.0% -20% -20%
Golub Capital BDC             23              -               23             21              -               21 0.0% 0.0% 10% 10%
Apollo Investment Corp             21              -               21               8              -                 8 0.0% 0.0% 163% 163%
TCG BDC Inc             21              -               21             16              -               16 0.0% 0.0% 31% 31%
Och-Ziff Capital Mgt Group LLC             16               3             13             18             12               6 18.8% 66.7% -11% 117%
PJT Partners               3              (4)               7               2              (1)               3 -133.3% -50.0% 50% 133%
Apollo Global Mgt LLC          (101)               8          (109)           394             39           355 -7.9% 9.9% -126% -131%
Total all 21 Investments-Related      11,018        1,763        9,255        9,322        1,637        7,685 16.0% 17.6% 18% 20%
REITs
Annaly Capital Management        1,328              -          1,328           441               1           440 0.0% 0.2% 201% 202%
New Residential Investment           607              (7)           614           143               6           137 -1.2% 4.2% 324% 348%
Two Harbors Investment Corp           339               4           335             34            (25)             59 1.2% -73.5% 897% 468%
Chimera Investment Corp           239              -             239           163              -             163 0.0% 0.0% 47% 47%
Kimco Realty           144              -             144             78              -               78 0.0% 0.0% 85% 85%
SL Green Realty           114              -             114               1              -                 1 0.0% 0.0% 11300% 11300%
VICI Properties Inc           114              -             114              -                -                -   0.0% NM NM NM
MFA Financial             83              -               83             78              -               78 0.0% 0.0% 6% 6%
Ladder Capital Corp             72               4             68             18              (1)             19 5.6% -5.6% 300% 258%
W.P. Carey Inc             62              (6)             68             59              (1)             60 -9.7% -1.7% 5% 13%
Brixmor Property Group             61              -               61             72              -               72 0.0% 0.0% -15% -15%
Blackstone Mortgage Trust             61              -               61             51              -               51 0.0% 0.0% 20% 20%
Apollo Commercial RE Finance             49              -               49             47              -               47 0.0% 0.0% 4% 4%
Life Storage             34              -               34             21              -               21 0.0% 0.0% 62% 62%
KKR RE Finance Trust             23              -               23             11              -               11 0.0% 0.0% 109% 109%
Empire State Realty             18              -               18             19              -               19 0.0% 0.0% -5% -5%
Seritage Growth Properties             16              -               16            (33)              -              (33) 0.0% 0.0% -148% -148%
Gramercy Property Trust             12              -               12              (8)              -                (8) 0.0% 0.0% -250% -250%
Getty Realty             10              -               10               8              -                 8 0.0% 0.0% 25% 25%
Global Net Lease               6               1               5               8               1               7 16.7% 12.5% -25% -29%
Paramount Group               3              -                 3               6               4               2 0.0% 66.7% -50% 50%
Vornado Realty Trust               2               1               1             60               2             58 50.0% 3.3% -97% -98%
Outfront Media               2              (7)               9              (1)              (4)               3 -350.0% 400.0% -300% 200%
Acadia Realty Trust              (4)              -                (4)             20              -               20 0.0% 0.0% -120% -120%
Lexington Realty Trust            (15)              -              (15)             42              -               42 0.0% 0.0% -136% -136%
Total all 25 REITs        3,380            (10)        3,390        1,338            (17)        1,355 -0.3% -1.3% 153% 150%
FinTech
Mastercard        1,803           311        1,492        1,478           397        1,081 17.2% 26.9% 22% 38%
Virtu Financial           469             59           410             24               3             21 12.58% 12.50% 1854% 1852%
E Trade Group           334             87           247           225             80           145 26.0% 35.6% 48% 70%
First Data Corp           161             27           134             91             12             79 16.8% 13.2% 77% 70%
Total all 4 FinTechs        2,767           484        2,283        1,818           492        1,326 17.5% 27.1% 52% 72%
Insurance
MetLife        1,656           399        1,257        1,072           120           952 24.1% 11.2% 54% 32%
American International Group        1,227           277           950        1,727           516        1,211 22.6% 29.9% -29% -22%
Marsh & McLennan           916           220           696           753           175           578 24.0% 23.2% 22% 20%
AmTrust Financial Services           661            (15)           676             71             21             50 -2.3% 29.6% 831% 1252%
Loews Corp           405             25           380           510           119           391 6.2% 23.3% -21% -3%
Assured Guaranty Ltd           217             20           197           372             55           317 9.2% 14.8% -42% -38%
Alleghany           208             37           171           208             59           149 17.8% 28.4% 0% 15%
Arch Capital Group Ltd           188             22           166           302             28           274 11.7% 9.3% -38% -39%
Assurant           137             31           106           215             71           144 22.6% 33.0% -36% -26%
National General Holdings             72             16             56             42             11             31 22.2% 26.2% 71% 81%
Voya Financial             21               4             17           113             93             20 19.0% 82.3% -81% -15%
Total all 11 Insurance Cos        5,708        1,036        4,672        5,385        1,268        4,117 18.1% 23.5% 6% 13%
Other Financial Cos
American Express        2,082           448        1,634        1,839           588        1,251 21.5% 32.0% 13% 31%
S&P Global           681           147           534           611           181           430 21.6% 29.6% 11% 24%
Moody's Corp           441             64           377           451           105           346 14.5% 23.3% -2% 9%
Nasdaq Inc           239             62           177           215             47           168 25.9% 21.9% 11% 5%
MSCI Inc           139             24           115           102             29             73 17.3% 28.4% 36% 58%
BGC Partners           133             36             97             58               7             51 27.1% 12.1% 129% 90%
Broadridge Financial           125             16           109           106             30             76 12.8% 28.3% 18% 43%
Triton Intl Ltd             93             10             83             43               7             36 10.8% 16.3% 116% 131%
Wisdom Tree Investments             14               5               9             15               8               7 35.7% 53.3% -7% 29%
Fortress Transp&Infrastr Investrs              (9)              -                (9)              (9)              -                (9) 0.0% 0.0% 0% 0%
Total 10 Other Financial Cos        3,938           812        3,126        3,431        1,002        2,429 20.6% 29.2% 15% 29%
Total all 81 Financial Cos      45,895        7,968      37,927      37,837        8,734      29,103 17.4% 23.1% 21% 30%
Verizon Communications        6,054        1,388        4,666        5,182        1,629        3,553 22.9% 31.4% 17% 31%
Cos in All Other Sectors 
Pfizer        4,127           556        3,571        3,951           821        3,130 13.5% 20.8% 4% 14%
Philip Morris        2,206           559        1,647        2,199           541        1,658 25.3% 24.6% 0% -1%
Bristol-Myers Squibb        1,779           284        1,495        1,955           429        1,526 16.0% 21.9% -9% -2%
PepsiCo        1,657           304        1,353        1,721           392        1,329 18.3% 22.8% -4% 2%
Time Warner        1,510          (132)        1,642        1,893           470        1,423 -8.7% 24.8% -20% 15%
Twenty-First Century Fox        1,331           370           961        1,252           370           882 27.8% 29.6% 6% 9%
International Business Machines        1,136          (540)        1,676        1,424          (329)        1,753 -47.5% -23.1% -20% -4%
Colgate Palmolive           924           246           678           862           251           611 26.6% 29.1% 7% 11%
CBS Corp           646           135           511           592           138           454 20.9% 23.3% 9% 13%
Regeneron Pharmaceuticals           585           107           478           432           183           249 18.3% 42.4% 35% 92%
Consolidated Edison           545           117           428           615           227           388 21.5% 36.9% -11% 10%
Estee Lauder           480           106           374           407           107           300 22.1% 26.3% 18% 25%
Omnicom Group           376             91           285           370           108           262 24.2% 29.2% 2% 9%
Sirius XM Holdings           370             80           290           321           114           207 21.6% 35.5% 15% 40%
Viacom           287             23           264           154             26           128 8.0% 16.9% 86% 106%
CA Inc           243             36           207           198             41           157 14.8% 20.7% 23% 32%
AMC Networks           218             57           161           216             73           143 26.1% 33.8% 1% 13%
L3 Technologies           216             24           192           199             42           157 11.1% 21.1% 9% 22%
Arconic           199             56           143           484           162           322 28.1% 33.5% -59% -56%
Thomson Reuters           199             27           172           156             11           145 13.6% 7.1% 28% 19%
Henry Schein           196             48           148           189             39           150 24.5% 20.6% 4% -1%
Intl Flavors & Fragrances           159             30           129           139             23           116 18.9% 16.5% 14% 11%
Tapestry           142               2           140           147             25           122 1.4% 17.0% -3% 15%
National Fuel Gas           130             38             92           142             53             89 29.2% 37.3% -8% 3%
Nielsen Holdings           114             39             75           116             43             73 34.2% 37.1% -2% 3%
JetBlue Airways           110             22             88           121             39             82 20.0% 32.2% -9% 7%
ITT Inc           109               8           101             55               9             46 7.3% 16.4% 98% 120%
Leucadia National           107            (32)           139           398           104           294 -29.9% 26.1% -73% -53%
Xylem             95             16             79             70             14             56 16.8% 20.0% 36% 41%
Take-Two Interactive             91              -               91           111             12             99 0.0% 10.8% -18% -8%
Ubiquiti Networks             80            (22)           102             72               8             64 -27.5% 11.1% 11% 59%
Michael Kors             74             30             44            (41)            (14)            (27) 40.5% 34.1% 280% 263%
MSG Networks             70             23             47             74             30             44 32.9% 40.5% -5% 7%
Macquarie Infrastructure             64             17             47             55             22             33 26.6% 40.0% 16% 42%
IAC/Interactive             59            (29)             88               4            (24)             28 -49.2% -600.0% 1375% 214%
Minerals Technologies             50               9             41             46             10             36 18.0% 21.7% 9% 14%
Shutterstock             44             11             33             11               4               7 25.0% 36.4% 300% 371%
Newmark Group             39               7             32             37              -               37 17.9% 0.0% 5% -14%
Steven Madden Ltd             37               8             29             31             11             20 21.6% 35.5% 19% 45%
Inter Parfums             32             10             22             27               9             18 31.3% 33.3% 19% 22%
New York Times             27               5             22             24             11             13 18.5% 45.8% 13% 69%
Moog             26             12             14             48             16             32 46.2% 33.3% -46% -56%
Weight Watchers Intl             26            (13)             39               2              (9)             11 -50.0% -450.0% 1200% 255%
Ralph Lauren             25            (16)             41          (269)            (65)          (204) -64.0% 24.2% 109% 120%
Balchem             25               6             19             21               5             16 24.0% 23.8% 19% 19%
Ship Finance Intl Ltd             25              -               25             32              -               32 0.0% 0.0% -22% -22%
Hain Celestial Group             24              (1)             25             42               9             33 -4.2% 21.4% -43% -24%
Monro             24               7             17             15               5             10 29.2% 33.3% 60% 70%
Systemax             20               6             14             12               2             10 30.0% 16.7% 67% 40%
ExlService Holdings             19              (4)             23             20               3             17 -21.1% 15.0% -5% 35%
Atlas Air Worldwide             13               4               9               1               1              -   30.8% 100.0% 1200% NM
Etsy Inc             13              -               13              (1)              (1)              -   0.0% 100.0% -1400% NM
Standard Motor Products             12               3               9             26             10             16 25.0% 38.5% -54% -44%
Conmed             12               2             10              (7)              (2)              (5) 16.7% 28.6% -271% -300%
Gibraltar Industries             11               3               8               6               2               4 27.3% 33.3% 83% 100%
Medidata Solutions             10              -               10             10              -               10 0.0% 0.0% 0% 0%
Madison Square Garden               9               1               8            (17)               1            (18) 11.1% -5.9% 153% 144%
Hess Corp               8             73            (65)          (309)            (13)          (296) 912.5% 4.2% 103% 78%
Shake Shak               6               1               5               6               2               4 16.7% 33.3% 0% 25%
Loral Space & Comm Equip               4              (1)               5           137             66             71 -25.0% 48.2% -97% -93%
Griffon               3               1               2               4               2               2 33.3% 50.0% -25% 0%
Bunge Ltd               2             19            (17)             82             28             54 950.0% 34.1% -98% -131%
New Media Investment Group              (1)              -                (1)            (10)              (6)              (4) 0.0% 60.0% -90% -75%
Park City Holdco              (2)              (1)              (1)              (7)              (2)              (5) 50.0% 28.6% -71% -80%
Interpublic Group of Cos              (3)             13            (16)             21              -               21 -433.3% 0.0% -114% -176%
LivePerson              (4)              (1)              (3)              (5)               1              (6) 25.0% -20.0% -20% -50%
Acorda Therapeutics              (5)               3              (8)            (20)              (1)            (19) -60.0% 5.0% -75% -58%
Presidio              (5)              (6)               1            (31)            (16)            (15) 120.0% 51.6% -84% -107%
Athenex              (7)              -                (7)            (41)              -              (41) 0.0% 0.0% -83% -83%
Longfin              (7)              -                (7)            (26)              -              (26) 0.0% 0.0% -73% -73%
Sothebys            (11)              (4)              (7)            (18)              (7)            (11) 36.4% 38.9% -39% -36%
ANGI Homeservices            (13)              (4)              (9)              -              (26)             26 30.8% NM NM -135%
Varonis Systems Inc            (14)               1            (15)            (12)              -              (12) -7.1% 0.0% 17% 25%
Teladoc            (24)              -              (24)            (16)              -              (16) 0.0% 0.0% 50% 50%
Intra-Cellular Therapies            (35)              -              (35)            (27)              -              (27) 0.0% 0.0% 30% 30%
HRG Group            (38)              (1)            (37)             16             24              (8) 2.6% 150.0% -338% 363%
TG Therapeutics            (42)              -              (42)            (28)              -              (28) 0.0% 0.0% 50% 50%
Prestige Brands Holdings            (53)            (13)            (40)             19               8             11 24.5% 42.1% -379% -464%
Coty Inc            (56)               4            (60)          (253)            (94)          (159) -7.1% 37.2% -78% -62%
Intercept Pharmaceuticals            (82)              -              (82)            (90)              -              (90) 0.0% 0.0% -9% -9%
Revlon            (93)              (2)            (91)            (77)            (39)            (38) 2.2% 50.6% 21% 139%
ADT Inc          (165)              (8)          (157)          (172)            (31)          (141) 4.8% 18.0% 4% -11%
Altice USA          (190)            (61)          (129)          (122)            (46)            (76) 32.1% 37.7% -56% -70%
Corning Inc          (465)           124          (589)             20            (66)             86 -26.7% -330.0% -2425% -785%
News Corp       (1,107)               3       (1,110)             45             45              -   -0.3% 100.0% -2560% NM
Total 85 Cos in all Other Sectors      18,758        2,896      15,862      20,256        4,411      15,845 15.4% 21.8% -7% 0%
Total all 167 New York Cos      70,707      12,252      58,455      63,275      14,774      48,501 17.3% 23.3% 12% 21%













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