Financial Markets Fall Sharply on Earnings Concerns; FTSE 100 Weekly Decline the Largest in 18 Months
London – April 18, 2005 – Reuters (LSE: RTR.L; Nasdaq: RTRSY), the global information company, today issues the latest analysis for FTSE 100 companies. This report contains aggregated forecast information from industry analysts, including the latest bottom up earnings and revenue estimates data and sector projections.
The FTSE 100 index traded sharply lower for the week. The Index declined 1.85% to close at 4,891.60. For the year, the Index is trading up 1.61%.
For the calendar year 2005, Reuters Estimates finds that the projected earnings growth rate for FTSE 100 is 9.0%, compared to 9.0% last week and down from the 2004 growth rate of 15.2%. Projected revenue growth for the 2005 calendar year is 5.7% down from 7.8% in 2004. For the calendar year 2006, earnings are expected to rise by 7.0% with revenue growth rising another 5.1%.
Reuters Senior Market Analyst, Ashwani Kaul stated, “The sectors with the largest projected gains for the FTSE 100 are Basic Materials and Non-Cyclical Consumer Goods & Services. They are expected to show the largest year-over-year earnings gains in the 2005 calendar year with gains of 36% and 24%, respectively. The Energy and Utilities sectors are expected to show the least favorable earnings gains, a 2% decline and 7% gain, respectively. All other sectors are expected to post year-over-year earnings gains between 6% and 16%.”
For the calendar year 2006, Reuters Estimates finds that the Industrial and Cyclical Consumer Goods & Services sectors are expected to show the largest year-over-year earnings gains, 14% and 11%, respectively. The Energy and Basic Materials sectors are expected to show the least favorable earnings gains, an 8% decline and 1% gain, respectively. All other sectors are expected to post year-over-year earnings gains between 5% and 10%.
The following tables were created using Reuters Estimates
| FTSE 100 - Bottom Up Summary | ||||
| FTSE 100 Index | Date | 2004 P/E | 2005 P/E | |
| 4891.60 | 15-Apr-05 | 20.17 | 18.50 | |
| Reuters Bottom-Up FTSE EPS Estimates | ||||
| 2003 | 2004 | 2005 | 2006 | 12M FWD |
| 209.11 | 242.54 | 264.34 | 282.78 | 269.69 |
| Year-Over-Year Growth | ||||
| 20.1% | 16.0% | 9.0% | 7.0% | N/A |
| Reuters Bottom-Up FTSE Revenue Estimates | ||||
| 2003 | 2004 | 2005 | 2006 | 12M FWD |
| 3,255.27 | 3,547.75 | 3,750.33 | 3,940.21 | 3,940.21 |
| Year-Over-Year Growth | ||||
| 6.5% | 9.0% | 5.7% | 5.1% | N/A |
| Year-Over-Year Sector Earnings Growth for FTSE 100 | |||||
| Annual 2005 | Annual 2006 | ||||
| Sector | Earnings | Earnings | |||
| Basic Materials | 36% | 1% | |||
| Cyclical Consumer | 10% | 11% | |||
| Energy | -3% | -8% | |||
| Financial | 6% | 8% | |||
| Healthcare | 9% | 10% | |||
| Industrial | 16% | 14% | |||
| Non-Cyclical Consumer | 25% | 5% | |||
| Technology | 9% | 8% | |||
| Utilities | 7% | 8% | |||
| FTSE 100 Total | 9.0% | 7.0% | |||
Contacts
Reuters Media Relations
Samantha Topping
646-223-5223
samantha.topping@reuters.com
Reuters Company Analysis Desk
rcd@reuters.com
Reuters Estimates
Ashwani Kaul, Senior Research Analyst
646-223-6287
ashwani.kaul@reuters.com
Note to Editors
Bottom–up estimates represent a weighted average of analysts' consensus forecasts, calculated by Reuters to be consistent with the FTSE 100 price index.
About Reuters Estimates
Used by the leading institutional firms, corporations and media, Reuters Estimates provides timely and accurate forecast information on companies around the world. The product features consensus and detailed data, estimates and actuals, analysts recommendations, target prices and long-term growth rates, broker and analyst information, up to 20 financial measures including revenue, profit, EBITDA, EPS and cash flow, annual and interim data, forecasted and historical periods and a history of estimate revisions.
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