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July 2018
IT Consulting
Sectorwatch
The technology sector, being the largest growth sector by far, has had a tremendous year and M&A activity continues to accelerate in 2018 due to strong earnings trends and potential increases in capital spending. Additionally, business confidence has improved among large players and the potential for cash repatriation could provide further boost to the sector.
Industry Trends:
- Current revenue growth rate exceeds the average of the last 3 years, indicating that market momentum is increasing
- Current gross profit margin exceeds the average of the last 3 years gross profit margin, indicating supplier pricing power
- Current EBITDA margin is less than the average of the last 3 years EBITDA margins, which may signal further consolidation
