Sunday, August 26, 2018

The 24 Largest Indiana Cos, All With Stock Market Caps Above $1 Bil, All With December Year Ends and All Audited By One of the Very Prestigious Big 4 CPA Firms, Generated Audited Total Pretax Income of $16.797 Bil For the Year Ended December 31, 2016 in Obama's Last Year in Office, Up a Very Robust 18.9% From That in Annual 2015 of $14.127 Bil .......................................................................................

Then in 2017, Trump's First Year in Office, These Same 24 Indiana Cos Generated Audited Total Pretax Income of $16.406 Bil For the Year Ended December 31, 2017, Down 2.3% From That in 2016 of $16.797 Bil   

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Donald Trump's Claim That US Companies Will Generate Substantially Higher Profits in His Administration Than Under Any Other US Presidential Administration Hasn't Proved To Be the Case in Indiana

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My Focus is on Pretax Income Rather Than After-Tax Net Income Because Income Taxes are Simply a Transfer of Financial Wealth From or To the US Federal, US State and Foreign  Governments To or From US Corporations.  It Has Nothing Whatsoever to do with Company Performance.

But Even on an After-Tax Net Income Basis, These Same 24 Indiana Companies Generated Audited Net Income of $12.239 Bil in 2016, Obama's Last Year in Office, Up a Very Robust 17.0% From That in Annual 2015 of $10.459 Bil ...... While These Same 24 Indiana Companies Posted Audited Net Income of $12.320 Bil in Annual 2017, Trump's First Year in Office, Up Only a Very Modest 0.7% From That in Annual 2016 of $12.239 Bil  

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Since Donald Trump will be holding a huge political campaign rally in his stronghold of Evansville, Indiana on this Thursday August 30, 2018, and with perhaps up to 1,000 Peaceful Protesters also expected to be there, I think it would be helpful to research how Indiana Companies have performed on the earnings front in the First Year 2017 of the Trump Administration and compare it to how they have performed in the Last Year 2016 of the Obama Administration.

From a review of SEC filings, the first chart below shows the Audited Gold-Standard US GAAP Pretax Income (Loss) From Continuing Operations for the Years Ended December 31, 2017, 2016 and 2015 along with the related Annual Percentage Changes for 2017 and 2016 for the 24 Indiana Companies including REITs with December Year Ends and with stock market caps above $1 bil presently.
Trump Obama
First Last Obama
Year Year Year
2017 2016 2015 Trump Obama
Audited Audited Audited Better Better
Pretax Pretax Pretax (Worse) (Worse)
Income Income Income % %
(Loss) (Loss) (Loss) Change Change
Indiana Companies From From From 2017 2016
Stock Market Caps Above $1 Bil City State 2017 Continuing Continuing Continuing vs vs
With December Year Ends HQs HQs FYE Operations Operations Operations 2016 2015
 $ mils  $ mils  $ mils
Anthem Indianapolis IN Dec 17          3,964          4,555          4,631 -13% -2%
Cummins Columbus IN Dec 17          2,365          1,930          2,025 23% -5%
Simon Property Group Indianapolis IN Dec 17          2,245          2,135          2,139 5% 0%
Eli Lilly Indianapolis IN Dec 17          2,197          3,374          2,790 -35% 21%
Steel Dynamics Fort Wayne IN Dec 17             935             564            (242) 66% 333%
Allison Transmission Holdings Indianapolis IN Dec 17             527             341             289 55% 18%
CNO Financial Group Carmel IN Dec 17             481             353             368 36% -4%
Zimmer Biomet Holdings Warsaw IN Dec 17             465             400             153 16% 161%
NiSource Merrillville IN Dec 17             443             510             340 -13% 50%
OneMain Holdings Evansville IN Dec 17             431             356            (226) 21% 258%
KAR Auction Services Carmel IN Dec 17             398             355             341 12% 4%
Allegion PLC Carmel IN Dec 17             396             295             209 34% 41%
Duke Realty Corp Indianapolis IN Dec 17             290             298             184 -3% 62%
Vectren Evansville IN Dec 17             262             325             297 -19% 9%
LCI Industries Elkhart IN Dec 17             213             199             114 7% 75%
Old National Bancorp Evansville IN Dec 17             169             200             163 -16% 23%
First Merchants Corp Muncie IN Dec 17             134             109               91 23% 20%
Wabash National Corp Lafayette IN Dec 17             123             185             163 -34% 13%
Patrick Industries Inc  Elkhart  IN Dec 17             113               84               66 35% 27%
Franklin Electric Co Fort Wayne IN Dec 17             105             104               86 1% 21%
1st Source Corp South Bend IN Dec 17             101               89               89 13% 0%
Lakeland Financial Corp Warsaw IN Dec 17               90               77               69 17% 12%
Kite Realty Trust Indianapolis IN Dec 17               14                 3               29 367% -90%
Endocyte Lafayette IN Dec 17              (55)              (44)              (41) -25% -7%
Total all 24 Indiana Cos        16,406        16,797        14,127 -2.3% 18.9%


Also from a review of SEC filings, the following chart below shows the Audited Gold-Standard US GAAP After-Tax Net Income (Loss) From Continuing Operations for the Years Ended December 31, 2017, 2016 and 2015 along with the related Annual Percentage Changes for 2017 and 2016 for the 24 Indiana Companies including REITs with December Year Ends and with stock market caps above $1 bil presently.

Trump Obama
First Last Obama
Year Year Year
2017 2016 2015 Trump Obama
Audited Audited Audited Better Better
Net Net Net (Worse) (Worse)
Income Income Income % %
(Loss) (Loss) (Loss) Change Change
Indiana Companies From From From 2017 2016
Stock Market Caps Above $1 Bil City State 2017 Continuing Continuing Continuing vs vs
With December Year Ends HQs HQs FYE Operations Operations Operations 2016 2015
 $ mils  $ mils  $ mils
Anthem Indianapolis IN Dec 17          3,843          2,470          2,560 56% -4%
Cummins Columbus IN Dec 17             994          1,456          1,470 -32% -1%
Simon Property Group Indianapolis IN Dec 17          2,245          2,135          2,139 5% 0%
Eli Lilly Indianapolis IN Dec 17            (204)          2,738          2,408 -107% 14%
Steel Dynamics Fort Wayne IN Dec 17             806             360            (145) 124% 348%
Allison Transmission Holdings Indianapolis IN Dec 17             504             215             182 134% 18%
CNO Financial Group Carmel IN Dec 17             176             358             271 -51% 32%
Zimmer Biomet Holdings Warsaw IN Dec 17          1,813             305             146 494% 109%
NiSource Merrillville IN Dec 17             129             328             199 -61% 65%
OneMain Holdings Evansville IN Dec 17             183             243              (93) -25% -361%
KAR Auction Services Carmel IN Dec 17             362             222             215 63% 3%
Allegion PLC Carmel IN Dec 17             277             231             155 20% 49%
Duke Realty Corp Indianapolis IN Dec 17             291             298             188 -2% 59%
Vectren Evansville IN Dec 17             216             212             197 2% 8%
LCI Industries Elkhart IN Dec 17             133             130               74 2% 76%
Old National Bancorp Evansville IN Dec 17               96             134             117 -28% 15%
First Merchants Corp Muncie IN Dec 17               96               81               65 19% 25%
Wabash National Corp Lafayette IN Dec 17             111             119             104 -7% 14%
Patrick Industries Inc  Elkhart  IN Dec 17               86               56               42 54% 33%
Franklin Electric Co Fort Wayne IN Dec 17               79               79               74 0% 7%
1st Source Corp South Bend IN Dec 17               68               58               57 17% 2%
Lakeland Financial Corp Warsaw IN Dec 17               57               52               46 10% 13%
Kite Realty Trust Indianapolis IN Dec 17               14                 3               29 367% -90%
Endocyte Lafayette IN Dec 17              (55)              (44)              (41) 25% 7%
Total all 24 Indiana Cos        12,320        12,239        10,459 0.7% 17.0%










Friday, August 24, 2018

All 1,683 US Non-Oil & Gas Companies and Excluding Berkshire Hathaway With Stock Market Caps of More Than $1 Bil Which Released Their June 2018 Quarter End or July 2018 Quarter End Earnings By August 24, 2018 Generated June 2018 and July 2018 Quarter Total US GAAP Pretax Income (PTI) From Continuing Operations of $389.747 Bil, Up 7.2% From Their Total PTI of $363.688 Bil in Their 2017 Comparable Quarters. This 7.2% Total PTI Growth in the June and July 2018 Quarters (The Second Full Quarter of the Trump Tax Cuts Act) Is a Marked Deceleration From Their 10.6% Total PTI Growth in the Their March and April 2018 Quarters (The First Full Quarter of the Trump Tax Cuts Act) Over Their 2017 Comparable Quarters..... $380.544 Bil in Their March and April 2018 Quarters vs. $344.231 Bil in Their March and April 2017 Quarters ........................................................................................

Berkshire Hathaway Was Isolated Because a New FASB Required It To Reflect In Its Pretax Earnings (PTI) Starting in 2018 the Changes in the Market Prices of Its Huge Investment in Equity Securities.  Its Largest Equity Investment Was in Apple Which Resulted in a Huge Pretax Earnings Charge in Its March 2018 Quarter and An Even Larger Pretax Earnings Increase in Its June 2018 Quarter Due To the Significant Changes in Apple's Stock Market Price.  Berkshire Hathaway's Pretax Income Was $15.098 Bil in Its June 2018 Quarter, Up 146% From Its PTI of $6.129 Bil in Its June 2018 Quarter.  On the Other Hand, Berkshire Hathaway Generated a Pretax Loss of $1.523 Bil in Its March 2018 Quarter, Down 127% From Its Pretax Income of $5.688 Bil in Its March 2017 Quarter.

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The 43 US Oil & Gas Companies Posted Total Pretax Income (PTI) of $26.610 Bil in the June 2018 Quarter, Up 274% From Their Total PTI of $7.916 Bil in Their June 2017 Quarter, a Huge Acceleration From Their Already Exceptional 58% Total Pretax Income Growth in Their March 2018 Quarter
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From a review of SEC filings, the below chart shows a recap of the Total US GAAP Pretax Income (Loss) From Continuing Operations for the June or July 2018, the June or July 2017, the March or April 2018 and the March or April 2017 Quarters for the 1,827 US Companies including Partnerships and REITs with June or July Quarter Ends, which have reported their June or July 2018 Quarter Earnings By August 24, 2018 and which had stock market caps of above $1 Bil  in the second quarter of 2018.

I will update the below chart when additional companies report their June, July or August 2018 quarter earnings.  It should be interesting to see how the total quarterly earnings growth deceleration changes from the 10.6% to 7.2% experienced so far.

Two Companies which came out of Bankruptcy and subsequently posted Large Reorganization Gains or Losses and/or Large Restructuring Charges were excluded below.

My Focus is on Pretax Income Rather Than After-Tax Net Income Because the Lower Effective Income Tax Rate in 2018 is Simply a Transfer of Financial Wealth From the US Federal Government to US Corporations.  It Has Nothing Whatsoever to do with Company Performance.
US US US US
GAAP GAAP GAAP GAAP
Total Total Total Total
Recap Totals So Far of Pretax Pretax Pretax Pretax
US Companies With Income Income Better Income Income Better
Market Caps Above $1 Bil June Qtr June Qtr (Worse) March Qtr March Qtr (Worse)
# of Releasing Their June or July 2018  or July Qtr or July Qtr % or April Qtr or April Qtr %
Cos  Quarter Earnings Through 8-24-18 2018 2017  Change 2018 2017  Change
mils $ mils $ mils $ mils $
June 2018 Quarters
    456 …..Market Cap > $10 Bil        360,454        308,745 16.7%        339,677        307,370 10.5%
    312 …..Market Cap $5-10 Bil          26,871          21,938 22.5%          23,590          20,667 14.1%
 1,017 …..Market Cap $1-5 Bil          23,919          22,277 7.4%          24,468          20,436 19.7%
 1,785 …..Market Cap > $1 Bil        411,244        352,961 16.5%        387,735        348,473 11.3%
July 2018 Quarter
      42 …..Market Cap > $1 Bil          23,212          24,772 -6.3%          24,700          23,457 5.3%
    June & July 2018 Quarters
 1,827 …..Market Cap > $1 Bil        434,455        377,733 15.0%        412,435        371,930 10.9%
Eliminations
       (1) Berkshire Hathaway (BH)          15,098            6,129 146.3%          (1,523)            5,688 -126.8%
 1,826 Market Cap > $1 Bil No BH        419,357        371,604 12.9%        413,958        366,242 13.0%
   (143) Oil & Gas Cos          29,610            7,916 274.1%          33,404          22,011 51.8%
 1,683 Market Cap > $1 Bil No BH & No Oil & Gas        389,747        363,688 7.2%        380,554        344,231 10.6%