Thursday, June 6, 2019

The 24 Largest Texas Non-Oil & Gas Cos Total Pretax Earnings Growth Collapsed (From 4Q 2018 Up 124% To 1Q 2019 Up Only 1%), While the 118 Smaller Cos Same Earnings Tanked (4Q 2018 Down 82% and 1Q 2019 Down 30%)

Democratic Presidential Candidate Pete Buttigieg Has Campaigned Several Times in and Will Be Returning to the key State of Texas.  Thus, I Think It Might Be Helpful to Research Just How Texas Non-Oil & Gas Companies Have Performed on the Pretax Earnings Front in the Most Recent Three Quarters.
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From a review of SEC filings, Google Finance and Market Watch Big Charts, I found 143 Texas Oil & Gas Companies whose stocks now trade and with stock markets caps of above $1 bil sometime since the beginning of 2018 and which also disclosed their quarterly Pretax Income in all of the three most recent quarters.  Included in the 143 Cos is iHeartMedia, which recently came out of bankruptcy and whose Pretax Income excluded in the most recent quarters a substantial amount of Contractual Interest.  That leaves 142 Cos. 

My Focus is on Pretax Income rather than on After-Tax Net Income because Income Taxes are simply a transfer of financial wealth between US Corporations and the US Federal, US State and Foreign Governments.  It has nothing whatsoever to do with company operating performance.

When you have Abnormally High Volatile Earnings like these, it is signaling that the US economy is not functioning properly.

From SEC filings, the chart below shows the Gold-Standard US GAAP Pretax  Income (Loss) From Continuing Operations for the First Quarters (Jan, Feb and March quarter ends) of both 2019 and 2018, the Fourth Quarters of both 2018 and 2017 and the Third Quarters of both 2018 and 2017 for each of these 142 Texas Non-Oil & Gas Companies.

US US US US US US
GAAP GAAP GAAP GAAP GAAP GAAP
Pretax Pretax Pretax Pretax Pretax Pretax
Income Income Income Income Income Income
Texas Non-Oil & Gas Companies (Loss) (Loss) (Loss) (Loss) (Loss) (Loss)
Reporting Quarterly Earnings to the SEC First First Fourth Fourth Third Third
 in Each of the Most Recent 3 Quarters Texas Quarter Quarter Quarter Quarter Quarter Quarter
Market Caps > $1 Bil  City HQs 2019 2018 2018 2017 2018 2017
mils $ mils $ mils $ mils $ mils $ mils $
Texas Largest Non-Oil & Gas Cos
….. Market Caps Above $10 Bil Currently
AT&T Dallas         5,371         6,141         5,745        (1,283)         6,207         4,974
Texas Instruments Dallas         1,377         1,553         1,503         1,550         1,924         1,789
LyondellBasell Industries Houston         1,020         1,534            796         1,342         1,347         1,438
Kimberly Clark Irving            609            201            512            768            600            803
Southwest Air Dallas            504            602            817            736            786            832
D R Horton Arlington            463            445            376            391            608            486
Waste Management Houston            462            511            659            584            597            603
Sysco Corp Houston            431            365            355            452            538            546
Comerica Dallas            424            335            400            330            381            334
Celanese Irving            385            432            174            265            462            289
Yum China Holdings Plano            322            403              65              56            279            272
Vistra Energy Irving            301           (395)           (262)           (359)            525            524
Atmos Energy Dallas            275            241            201            208              64              55
American Air Lines Fort Worth            245            238            387            408            456         1,063
Crown Castle Houston            216            118            218            113            169            118
CenterPoint Energy Houston            191            212            181            286            209            267
CoPart Dallas            165            144            149            114            133            106
Waste Connections The Woodlands            154            157            146            166            203            188
Jacobs Engineering Group Dallas            112              49              92               (7)            198            119
Match Group Dallas              95              87            135            102            122              62
Lennox Intl Richardson              83              44            106              96            134            147
Camden Property Trust Houston              40              41              41              89              40              36
Invitation Homes Dallas              21             (18)              26             (46)                1             (23)
Dell Technologies Round Rock           (275)           (623)           (995)        (1,092)           (468)        (1,210)
Total 24 Largest Texas Non-Oil & Gas Cos
      12,991       12,817       11,827         5,269       15,515       13,818
….. % Change From Prior Year Quarter
1% 124% 12%
Texas Smaller Non-Oil & Gas Cos
….. Market Caps > $1 Bil Sometime Since 1-1-18
Santander Consumer USA Dallas            337            303            144             (24)            297            276
American National Insurance Galveston            285              21             (33)            187            195            114
Michaels Companies Irving            235            320              99            121              36              56
Torchmark McKinney            228            213            204            216            220            221
Alliance Data Systems Plano            207            241            397            306            353            334
Huntsman Corp The Woodlands            182            289            104            216            256            151
Quanta Services Houston            165              57            129              46            168            132
Cullen/Frost Bankers San Antonio            130            118            133            110            133            103
Westlake Chemical Houston            113            386            176            325            391            328
Sunoco LP Dallas            107             (47)             (77)              19            124              77
Texas Capital Bancshares Dallas            105              91              91              95            109              89
Prosperity Bancshares Houston            104              92            105            102            104            101
Service Corp Intl Houston            100            110            126            134              86              67
Argo Group Intl San Antonio            100              25             (60)              12              45             (66)
CyrusOne Dallas              89              44           (107)                4             (42)             (54)
Sally Beauty Holdings Denton              89              86              85              86              79              59
Insperity Kingwood              87              65              34              24              49              30
Resideo Technologies Austin              84              79              38              22             (18)              58
Flowserve Irving              76              25              79              67              44              68
Cadence Bancorp Houston              75              50              43              52              62              50
Tenet Healthcare Dallas              74            260            158            224              71           (348)
Nexstar Broadcasting Group Irving              73              65            213              88            135              74
Sabre Southlake              71            127              83            154              96            133
Blucora Inc Irving              66              48             (17)             (20)             (15)             (17)
Intl Bancshares Laredo              65              68              73              65              65              60
J.C. Penney Co Plano              63            156           (159)           (154)             (96)             (47)
FirstCash Fort Worth              59              56              63              57              44              42
Kirby Houston              58              43             (30)             (59)              57              48
KBR Inc Houston              58            173              63              35              82              63
Brinker Intl Dallas              56              59              35              41              32              15
Group 1 Automotive Houston              52              46              40              59              44              47
Weingarten Realty Investors Houston              51            150              63            173              53              75
Hilltop Holdings Dallas              51              32              38              65              45              48
National Western Life Group Austin              51              34              23              36              45              34
Rush Enterprises New Braunfels              50              28              62              34              54              45
Independent Bank Group McKinney              48              36              42              37              45              35
Builders FirstSource Dallas              47              25              67             (25)              93              55
First Financial Bankshares Abilene              46              41              45              38              48              39
Cinemark Holdings Plano              45              87              56              76              67              63
Spirit Realty Capital Dallas              44              38              55              37              31                7
Main Street Capital Houston              44              34              12              74              73              39
Howard Hughes Corp Dallas              43                2              73            121              31              16
Valhi Dallas              43            106            110              31              57              77
Kronos Worldwide Dallas              43            100            113              37              47              80
Diodes Inc Plano              42              26              43              21              44              20
Helen of Troy El Paso              41              29              58              64              48              36
Trinity Industries Dallas              40              21              46              74              39            108
TPG Specialty Lending Fort Worth              39              34              14              27              37              25
Conn's The Woodlands              39              26              20                2              22                7
Dave & Busters Entertainment Dallas              37              40              12              17              43              37
LegacyTexas Financial Group Plano              37              32              54              43              54              44
At Home Group Plano              37              31              12                4             (19)              15
Arcosa Dallas              36              30              29              22                7              34
Tyler Technologies Plano              35              39              40              45              39              44
HFF Dallas              33              18              63            100              39              37
Commercial Metals Irving              33              12              25              40              58             (16)
American Campus Communities Austin              32              27              50              40               (3)               (1)
Orion Engineered Carbons SA Houston              28              37              22              15              36              24
Comfort Systems USA Houston              27              19              34              26              52              36
National Instruments Austin              26              30              63              57              48              38
Darling Ingredients Irving              25            102              50              22               (7)              15
Integer Holdings Plano              25              18              25              16             (14)              19
MRC Global Houston              24              25              16             (14)              24                5
LGI Homes The Woodlands              22              31              56              55              49              51
Southside Bancshares Tyler              22              18              20              16              22              18
Alamo Group Sequin              21              20              23              21              27              25
Triumph Bancorp Dallas              19              16              23              15              12              15
InfraREIT Dallas              19              18              24             (25)              20              22
HMS Holdings Irving              18                9              26              16              22              10
Encore Wire McKinney              17              15              32              23              31              20
RealPage Richardson              16              11                6                4              10               (0)
Genesis Energy LP Houston              16                8             (28)              11               (1)                6
Forestar Group Arlington              16                5                5             (10)              45              62
Kraton Houston              16              24              14                9              52               (7)
Allegiance Bancshares Houston              16                9              16                8              11                4
US Physical Therapy Houston              15              13              16                7              15              10
Summit Hotel Properties Austin              13              10                5              11              37              22
Atrion Allen              12              11                9                9              11              12
Biglari Holdings San Antonio              12               (3)              53              28             (25)             (50)
AZZ Inc Fort Worth              10                2              19               (2)              14              14
Cirrus Logic Austin                9              22              32            105              56              90
Rent-A-Center Plano                9             (21)                3             (66)              15             (20)
Veritex Holdings Dallas                9              14              13              10              10                8
El Paso Electric El Paso                8             (10)             (19)                7              96              92
Goosehead Insurance Westlake                8                4                1                0                1                0
Wingstop Dallas                7                8                4                7                8                7
Cardtronics plc Houston                7               (3)               (6)                9              17           (180)
SolarWinds Corp Austin                4             (68)             (14)               (5)               (1)               (1)
Primoris Services Dallas                4                4              46              24              46              32
Exterran Houston                4                9              11                5              11              10
Yeti Holdings Austin                3               (5)              30              15              20              16
Silicon Labs Austin                3              22              13              23              22              22
Entergy Texas The Woodlands                3              22               (9)              15              83              62
Venator Materials plc The Woodlands               (1)            100             (87)              94           (421)              67
Tailored Brands Houston               (2)             (13)              27              55              59              87
Fossil Group Richardson               (2)             (41)              62              42              10               (9)
US Concrete Euless               (3)               (2)                5             (11)              24              32
Luminex Austin               (4)              16                1                9                4                7
Orthofix Medical Lewisville               (5)              11              12              17               (1)                9
Stewart Info Services Group Houston               (7)               (3)              20              17              25              19
SailPoint Technoligies Austin               (7)               (5)              10                5                4               (3)
Upland Software Austin               (8)               (3)               (9)               (4)               (4)               (3)
Tier REIT Dallas             (14)                9             (28)             (10)              23               (8)
PROS Holdings Houston             (17)             (19)             (13)             (17)             (16)             (21)
Q2 Holdings Austin             (19)               (6)             (15)               (6)               (9)               (6)
Abeona Therapeutics Dallas             (19)             (11)             (17)               (8)             (16)               (5)
CorePoint Lodging Irving             (22)             (11)           (171)             (18)               (8)              19
Lexicon Pharmaceuticals The Woodlands             (22)             (42)             (17)             (31)             (28)             (31)
Reata Pharmaceuticals Irving             (29)                4             (26)             (17)             (31)             (12)
Fluor Irving             (32)               (9)            161            152            147            165
Dean Foods Dallas             (64)                1           (280)              19             (40)             (14)
McDermott Houston             (78)              55        (2,634)              44              44            113
NCI Building Systems Houston             (84)                6              34              26              50              28
Six Flags Entertainment Grand Prairie             (94)             (82)            116              17            260            300
Clear Channel Outdoor Holdings San Antonio           (112)             (87)                7           (827)             (52)             (42)
Eagle Materials Dallas           (172)              49              75              51              92              92
Mr. Cooper Group Coppell           (233)            206             (83)              41             (42)              12
Gamestop Grapevine           (243)            238           (507)              74                8              29
Total 118 Smaller Texas Non-Oil & Gas Cos
        3,900         5,554            734         4,024         5,260         4,601
….. % Change From Prior Year Quarter
-30% -82% 14%
Total all 142 Texas Non-Oil & Gas Cos       16,891       18,371       12,561         9,293       20,775       18,419
….. % Change From Prior Year Quarter -8% 35% 13%