Non-GAAP Adjusted Net Income is on an after income tax basis and is what the Companies disclose as their Ongoing Core Earnings in their earnings releases. It is also what Wall Street uses, for the most part, as the Companies' Ongoing Core Earnings.
The 28 Publicly-held Retailers did just great with their Total Adjusted Earnings up a very robust 10.2% and their Total Company-Earnings-Weighted Earnings Per Share (EPS) up an even more robust 14.6%. This Add on EPS increase of 4.4% is due to so many of these retailers having very robust common stock buyback programs.
It should be pointed out that the 1Q 2013 earnings of many of these retailers benefited from having 14 weeks as compared to 13 weeks in the 1Q 2012.
When I add in Toys R US, this Total Adjusted Earnings Increase of these Retailers decreases a bit to 9.2%.
It is pretty clear to me that the US economists were off target when they were projecting that the elimination of the US payroll tax holiday would severely hurt US consumer spending in early 2013.
On the other hand, the 16 Technology Corps continued to struggle, with their 1Q 2013 Total Adjusted Earnings declining by 3.1% from the 1Q 2012. These 16 Technology Corps received a 2.7% EPS Growth benefit from some of them having very robust common stock buyback programs. Thus on an EPS basis, the Total Adjusted Earnings decline was only 0.4%.
Clearly, the US Government should be taking steps to improve the environment for these US Technology Corps, which have been so key to the overall success of the US economy.
The 16 US Big Corps in Sectors other than Retailing and Technology did very well in the 1Q 2013 with their Total Adjusted Earnings up by a very robust 12.8% over the 1Q 2012.
Below here are the Adjusted Earnings for both the 1Q 2013 and the 1Q 2012 for each of these 61 US Big Corps:
| Adjusted | Adjusted | |||
| 1Q | 1Q | Net | Net | |
| 2013 | 2012 | Income | Income | |
| Adjusted | Adjusted | Increase | Increase | |
| Net | Net | (Decrease) | (Decrease) | |
| Income | Income | Amount | % | |
| mils of $s | mils of $s | mils of $s | ||
| Retail | ||||
| Walmart | 5,606 | 5,194 | 412 | 7.9% |
| Target | 1,079 | 1,009 | 70 | 6.9% |
| Home Depot | 1,021 | 774 | 247 | 31.9% |
| Macy's | 818 | 729 | 89 | 12.2% |
| TJX | 605 | 475 | 130 | 27.4% |
| Best Buy | 554 | 783 | (229) | -29.2% |
| Limited Brands | 519 | 459 | 60 | 13.1% |
| Costco | 485 | 394 | 91 | 23.1% |
| Kroger | 462 | 284 | 178 | 62.7% |
| Kohls | 378 | 455 | (77) | -16.9% |
| GAP | 351 | 218 | 133 | 61.0% |
| Dollar General | 317 | 299 | 18 | 6.0% |
| Staples | 308 | 284 | 24 | 8.5% |
| Lowes | 288 | 322 | (34) | -10.6% |
| Nordstrom | 284 | 236 | 48 | 20.3% |
| GameStoop | 262 | 240 | 22 | 9.2% |
| Ross Stores | 237 | 192 | 45 | 23.4% |
| Dollar Tree | 229 | 188 | 41 | 21.8% |
| Tiffany | 180 | 178 | 2 | 1.1% |
| Autozone | 176 | 167 | 9 | 5.4% |
| Dillard's | 138 | 113 | 25 | 22.1% |
| Darden Restaurants | 135 | 164 | (29) | -17.7% |
| PetSmart | 134 | 102 | 32 | 31.4% |
| Williams-Sonoma | 134 | 123 | 11 | 8.9% |
| Dick's Sporting Goods | 130 | 111 | 19 | 17.1% |
| Big Lots | 120 | 115 | 5 | 4.3% |
| Foot Locker | 111 | 84 | 27 | 32.1% |
| American Eagle Outfitters | 111 | 76 | 35 | 46.1% |
| Total all 28 Retailers | 15,172 | 13,768 | 1,404 | 10.2% |
| Toys R Us | 239 | 343 | (104) | -30.3% |
| Total all 29 Retailers | 15,411 | 14,111 | 1,300 | 9.2% |
| Technology | ||||
| Oracle | 3,108 | 3,128 | (20) | -0.6% |
| Cisco Systems | 2,722 | 2,563 | 159 | 6.2% |
| Hewlett Packard | 1,605 | 1,832 | (227) | -12.4% |
| Accenture | 720 | 714 | 6 | 0.8% |
| Dell | 702 | 913 | (211) | -23.1% |
| Agilent Technologies | 222 | 244 | (22) | -9.0% |
| Nvidia | 215 | 158 | 57 | 36.1% |
| NetApp | 243 | 216 | 27 | 12.5% |
| Analog Devices | 131 | 139 | (8) | -5.8% |
| Paychex | 145 | 135 | 10 | 7.4% |
| Jabil Circuit | 109 | 123 | (14) | -11.4% |
| Marvell Technology | 104 | 127 | (23) | -18.1% |
| SAIC | 182 | 106 | 76 | 71.7% |
| Autodesk | 121 | 106 | 15 | 14.2% |
| Adobe Systems | 179 | 285 | (106) | -37.2% |
| Intuit | 100 | 158 | (58) | -36.7% |
| Total all 16 Techs | 10,608 | 10,947 | (339) | -3.1% |
| Other Sectors | ||||
| Monsanto | 1,479 | 1,204 | 275 | 22.8% |
| Medtronic | 946 | 888 | 58 | 6.5% |
| Walgreen's | 915 | 767 | 148 | 19.3% |
| Nike | 662 | 569 | 93 | 16.3% |
| Deere | 650 | 533 | 117 | 22.0% |
| General Mills | 421 | 366 | 55 | 15.0% |
| FedEx | 390 | 490 | (100) | -20.4% |
| Mosaic | 378 | 308 | 70 | 22.7% |
| HJ Heinz | 320 | 311 | 9 | 2.9% |
| ConAgra Foods | 230 | 223 | 7 | 3.1% |
| Campbell Soup | 220 | 207 | 13 | 6.3% |
| JM Smucker | 159 | 138 | 21 | 15.2% |
| Brown Forman | 158 | 133 | 25 | 18.8% |
| Joy Global | 140 | 135 | 5 | 3.7% |
| Hormell Foods | 130 | 128 | 2 | 1.6% |
| PVH | 119 | 87 | 32 | 36.8% |
| Total all 16 in Other Sectors | 7,317 | 6,487 | 830 | 12.8% |
| Total 61 in all Sectors | 33,336 | 31,545 | 1,791 | 5.7% |
And below here is a comparison of the Total Adjusted Earnings Growth, the Total Adjusted EPS Growth, and the resultant Add-on EPS Growth Due to Common Stock Buybacks in the 1Q 2013 for each of the publicly-held Retailers and Technology Corps:
| Add-On | |||
| EPS | |||
| Growth | |||
| Adjusted | Over | ||
| Net | Adjusted | Earnings | |
| Income | EPS | Growth | |
| Increase | Increase | Positive | |
| (Decrease) | (Decrease) | % | |
| % | % | Spread | |
| Retail | |||
| Walmart | 7.9% | 10.6% | 2.7% |
| Target | 6.9% | 10.7% | 3.8% |
| Home Depot | 31.9% | 36.0% | 4.1% |
| Macy's | 12.2% | 20.6% | 8.4% |
| TJX | 27.4% | 32.3% | 4.9% |
| Best Buy | -29.2% | -24.8% | 4.5% |
| Limited Brands | 13.1% | 17.3% | 4.3% |
| Costco | 23.1% | 22.2% | -0.9% |
| Kroger | 62.7% | 76.0% | 13.3% |
| Kohls | -16.9% | -8.3% | 8.6% |
| GAP | 61.0% | 65.9% | 4.9% |
| Dollar General | 6.0% | 11.5% | 5.5% |
| Staples | 8.5% | 12.2% | 3.7% |
| Lowes | -10.6% | 0.0% | 10.6% |
| Nordstrom | 20.3% | 26.1% | 5.8% |
| GameStoop | 9.2% | 24.9% | 15.7% |
| Ross Stores | 23.4% | 25.9% | 2.4% |
| Dollar Tree | 21.8% | 26.3% | 4.4% |
| Tiffany | 1.1% | 0.7% | -0.4% |
| Autozone | 5.4% | 15.2% | 9.8% |
| Dillard's | 22.1% | 29.9% | 7.7% |
| Darden Restaurants | -17.7% | -18.4% | -0.7% |
| PetSmart | 31.4% | 36.3% | 4.9% |
| Williams-Sonoma | 8.9% | 14.5% | 5.6% |
| Dick's Sporting Goods | 17.1% | 17.0% | -0.1% |
| Big Lots | 4.3% | 19.4% | 15.1% |
| Foot Locker | 32.1% | 32.7% | 0.6% |
| American Eagle Outfitters | 46.1% | 41.0% | -5.0% |
| Total all 28 Retailers | 10.2% | 14.6% | 4.4% |
| Technology | |||
| Oracle | -0.6% | 4.8% | 5.5% |
| Cisco Systems | 6.2% | 8.5% | 2.3% |
| Hewlett Packard | -12.4% | -10.9% | 1.5% |
| Accenture | 0.8% | 3.1% | 2.3% |
| Dell | -23.1% | -21.6% | 1.5% |
| Agilent Technologies | -9.0% | -8.7% | 0.3% |
| Nvidia | 36.1% | 34.6% | -1.5% |
| NetApp | 12.5% | 15.5% | 3.0% |
| Analog Devices | -5.8% | -8.7% | -2.9% |
| Paychex | 7.4% | 8.1% | 0.7% |
| Jabil Circuit | -11.4% | -8.6% | 2.8% |
| Marvell Technology | -18.1% | -9.5% | 8.6% |
| SAIC | 71.7% | 68.8% | -2.9% |
| Autodesk | 14.2% | 15.2% | 1.1% |
| Adobe Systems | -37.2% | -38.6% | -1.4% |
| Intuit | -36.7% | -36.5% | 0.2% |
| Total all 16 Techs | -3.1% | -0.4% | 2.7% |
