Thursday, July 21, 2011

Corporate Profits: Still Strong

We're entering the season of corporate profit reporting, and it's shaping up to be a doozy. Wall Street analysts are predicting an all-time high for profits, surpassing the earlier record set in the second quarter of 2007. Profit margins have risen to an average of 9 percent, which is also the highest they've been since 2007.

According to a survey by CNNMoney, economists expect earnings for the S&P 500 to be up 13 percent over the course of 2011. That's a far cry from last year, when earnings rose a whopping 47 percent, but that was in comparison to the recession-hindered 2009 figures. Going up 13 percent from an already-strong figure is impressive indeed.

Since the recession officially ended in June 2009, corporate profits have risen an eye-popping 90 percent. That's a remarkable couple of years.

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