Analysts Double S&P 500 Sales Forecast as Margins Stagnate

Analysts are increasing sales forecasts for Standard & Poor’s 500 Index companies by the most in three years, compensating investors as the biggest expansion in profitability since 2002 ends.

Revenue will climb 10 percent in 2011, twice last year’s rate, as personal income and corporate spending recover, according to data from analysts compiled by Bloomberg. Net margin estimates were unchanged the past two months after rising more than 50 percent since 2009. The measure of income divided by revenue increased to 13.4 percent in the first quarter from 8.2 percent in October 2009, Bloomberg data show.