The company is sticking to its goal of having positive operating leverage for the year.
Costs have been cut relentlessly, resulting in a leaner organization with greater operating leverage.
While this sounds impressive, remember that many companies experience tremendous operating leverage exiting a recession.
FORBES: Advertising Agency Results Latest Anecdotal Evidence Of Expanding Economy
Disney has a high operating leverage and any improvement in content monetization will lead to margin growth.
FORBES: Disney's Multi-Platform Distribution Deals Can Lift Margins And Outlook
Interest-bearing debt was JPY 1.2 trillion, relatively high financial leverage for a manufacturing company with high operating leverage.
This is what analysts call negative operating leverage and they don't like it.
Since WoW has very high operating leverage any decline in revenue will have dramatic effects on the bottom line.
FORBES: World Of Warcraft, Guild Wars 2 And Vivendi: Activision's Achilles' Heel
Disney has high operating leverage as the bulk of its costs are fixed.
Another blue-chip name performing well is American Express (AXP), which had operating leverage for the first time this quarter.
Additional sensitivity analysis indicates this strength could continue and drive operating leverage.
The fixed costs of content acquisition will be spread out over a smaller revenue base, implying that Netflix will lose operating leverage.
If you want action, pick a service company with a lot of operating leverage, or high fixed costs in proportion to revenue.
Analysts are looking for 30% earnings growth next year driven by new store openings, operating leverage, and stabilization in the domestic housing market.
However, continued growth in digital licensing, investments in sports programming and expansion in international markets can provide some operating leverage to News Corp.
FORBES: News Corp Could Be A $31 Stock If Margin Improvement Continues
He adds that RSC is bound to garner further market share gains from smaller competitors and significant operating leverage as demand continues to improve.
FORBES: Smart Buyout Deal By United Rentals Delivers Rich returns to RSC Holders
However, because we will be fully invested for growth, as we increase our revenues we expect to see greater operating leverage from the business.
FORBES: Sierra Wireless To Sell AirCard Unit To Netgear For $144.5M
Aided by operating leverage, adjusted EBITDA margin increased to 37.8% from 36.8% in the year ago quarter, improving for the first time since 2009.
Our work suggests that Och-Ziff has significant operating leverage to assets under management, and recent inflows bode well for both revenue growth and margin expansion.
Denbow likes the miners as a way to gain some operating leverage on gold itself, but even he acknowledges there are significant risks to that strategy.
FORBES: Playing Gold After The Plunge: Be Careful With The Miners
In addition, the company is also gaining operating leverage as it opens more than 200 new stores by 2005, allowing fixed costs to be spread over a greater sales base.
Chief Executive Charles Prince has promised to fix it this year, saying today that the company was "making very good progress" toward getting to positive operating leverage.
Though operating leverage may remain a concern for GOOG skeptics, we think this issue will begin to lose relevance as revenue accelerated at its fastest rate in 3 years.
FORBES: Google: Clapping! Cheering! Whooping! Street Loves Big Q2
"Citigroup has got back to getting operating leverage where revenue grows faster than expenses in virtually every business line, " said Bob Maneri, of investment management firm Victory Capital Management.
We have not only a growing backlog, but a strong design pipeline, which combined with strong operating leverage from increasing revenue will allow us to drive earnings and cash flow.
But as economist Donald Luskin has written, small changes in GDP cause big swings in corporate operating leverage and thus in stock market values, investor animal spirits and consumer sentiment.
In investor jargon, it therefore has huge operating leverage: the initial start-up costs for hardware and software were high, but since break-even each new client's revenues have been almost pure profit.
By sticking with the winners, not only do investors buy companies with improved operating leverage, they also benefit by investing alongside the managements of strong institutions who buy assets on the cheap.
Margin benefits from greater scale and operating leverage.
FORBES: Sirius XM: Goldman Launches With Buy Rating, $3.50 Target
Steven Tananbaum of Goldentree Asset Management, an investment firm specialising in junk, argues that sometimes the greater resilience of shareholders compared with bondholders is soundly rooted because the operating leverage is so large (for instance, in airlines).
应用推荐