Friday 23 May 2014

8 companies where workers hit $1M in revenue.

Did you generate $1 million in revenue for your employer in the first quarter? If not, you’d better stop reading this and get back to work if you want to keep up with the USA’s most productive workers.

Eight non-financial companies in the Standard & Poor’s 500, including energy firms Valero Energy and Phillips 66 and health care company AmerisourceBergen, collected $1 million, on average, per every employee in the just completed first quarter, based on a USA TODAY analysis of data from S&P Capital IQ.

The analysis looks at revenue brought in during the first quarter relative to the number of total employees reported at the end of each company’s most recent fiscal year.

Energy companies dominate the list for grabbing productivity from employees. These companies generate large amounts of revenue from a relatively small number of employees since they rely so heavily on equipment designed to extract massive amounts of high-priced commodities.

Refiner Valero had the most productive workers in the first quarter. The company brought in $3.3 million in revenue, on average, for each employee on the payroll.

AmerisourceBergen was the only non-energy company to crack the $1 million per employee barrier in the first quarter. The drug distribution company pulled in $2.3 million, on average, for every worker.

The companies that generated $1 million or more from employees in the first quarter are:
Company     Symbol     Q1 revenue per worker     Sector
Valero Energy     VLO     $3.4 million     Energy
Phillips 66     PSX     $2.7 million     Energy
AmerisourceBergen     ABC     $2.3 million     Health care
ONEOK     OKE     $1.6 million     Energy
EOG Resources     EOG     $1.5 million     Energy
Tesoro     TSO     $1.4 million     Energy
ExxonMobil     XOM     $1.3 million     Energy
Marathon Oil     MRO     $1.0 million     Energy

Source: S&P Capital IQ

Investors have been rewarding these highly productive companies. Shares of the eight companies are up 21% on average over the past 12 months, topping the S&P 500′s 13.1% gain during the same time. Clearly, the upswing in commodity prices and rally in energy stocks play a role, but investors are keenly aware of companies’ productivity.

Shares of companies with high productivity are being rewarded beyond the energy sector. Excluding energy, there are 10 companies that brought in $500,000 or more per employee in the first quarter. These companies hail from the health care, materials and technology sectors. And shares of these stocks, too, are beating the market, gaining 35.5% over the past 12 months on average.


Chart source: S&P Capital IQ
Chart source: S&P Capital IQ
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Chart source: S&P Capital IQ

Shares of these companies have rallied even more powerfully this year — especially following the conclusion of earnings season. The high revenue per employee companies, excluding financials and energy, are up nearly 8% this year on an equal-weighted basis, topping the 3.1% gain by the S&P 500.

Below are the non-financial and non-energy companies that generated the largest amount of revenue per employee in the first calendar quarter:
Company     Symbol     Q1 revenue per worker ($)     Stock % ch. LTM
AmerisourceBergen     ABC     $2,276,472     29.4%
LyondellBasell     LYB     $837,218     49.1%
Gilead Sciences     GILD     $819,501     44.9%
Express Scripts     ESRX     $790,158     13.9%
Archer Daniels Midland     ADM     $665,466     26.4%
Cardinal Health     CAH     $637,708     40.5%
Integrys Energy     TEG     $598,384     -6.7%
Netflix     NFLX     $583,949     64.7%
Apple     AAPL     $568,443     37.9%
McKesson     MCK     $534,188     54.8%

Source: S&P Capital IQ

Larger companies are on a constant search to find ways to replace employees with technology. And Wall Street continues to reward such efforts.

Now, get back to work.


Culled from USA TODAY.

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