FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


Revenue in the U.S. Middle Market Grows at 8.45% in Q1 2017, Golub Capital

April 11, 2017, 07:08 AM
Filed Under: Economic Commentary

Middle market private companies in the Golub Capital Altman Index experienced year-over-year revenue growth of 8.45% and posted earnings  declines of 1.64% during the first two months of the first quarter of 2017. This is compared to year-over-year increases of 5.33% in revenues and a decline of 2.48% in earnings in the fourth quarter of 2016.

Lawrence E. Golub, CEO of Golub Capital said, "The Golub Capital Altman Index numbers indicate that the economy continues to grow nicely in the first quarter of 2017, consistent with 2-3% GDP growth. We don't see the same acceleration as what seems to be happening in the European Union, but that is to be expected because U.S. economic growth has been stronger for some time. The EU is simply recovering later."

"This was a particularly strong quarter for the Information Technology sector, which led profit growth with an increase of 11.06%. Other sectors continue to experience cost pressures, largely from rising labor costs."

Dr. Altman said, "The Golub Capital Altman Index of middle market companies' performance in the U.S. continued to show strong year-over-year growth in revenues in the first quarter of 2017, but, at the same time, for the third consecutive quarter, recorded negative growth in earnings. Despite high consumer confidence indicators, as buying patterns change, the sector continues to experience margin pressure. The results across all sectors show signs that the economy is struggling with inflationary costs, including big increases in wages and other operating costs."

The Golub Capital Altman Index, which is produced by Golub Capital in collaboration with renowned credit expert Dr. Edward I. Altman, is the first and only index based on actual sales and earnings data for middle market companies. It measures median revenue and earnings performance from the data of more than 150 private U.S. companies in the loan portfolio of Golub Capital, a leading middle market lender. Reported shortly before public company quarterly earnings season, the index has served as a reliable indicator of the overall growth rates in revenue and earnings of public companies in market indexes such as the S&P 500 and S&P SmallCap 600, as well as quarterly Gross Domestic Product (GDP), according to statistical back-testing dating back to 2012, when data began to be tracked.

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.