Margin Pressure

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Dictionary Says

Definition of 'Margin Pressure'

A finanicial term for the effect of certain internal or market forces on a company's gross, operating or net margins. If something happens to make a company's costs rise or revenues fall, margins will become compressed, reducing net earnings.

Things that can cause margin pressure include:

1. When a new competitor enters the business and increases its product offering or lowers its costs
2. When commodity costs rise or other costs within the supply chain are rising
3. When increased regulatory controls are imposed on the company or industry
4. When new legislation is introduced that fundamentally changes the markets in which the company competes
5. When internal production problems or delays arise
6. When rising selling, general and administrative expense (SG&A) costs occur without a proportional rise in revenue
Investopedia Says

Investopedia explains 'Margin Pressure'

Margin pressure can be related to macroeconomic events, such as rising oil prices, or company-specific events, such as a loss of market share. Investors expect margins to fluctuate over time, but severe margin pressures, or those that could exist for a long time, will usually drag down a stock even in advance of an actual earnings decline.
Search results for

'Margin Pressure'

  • 3 Reasons To Own Lincare Holdings

    http://stocks.investopedia.com/stock-analysis/2011/3-Reasons-To-Own-Lincare-Holdings-LNCR-GTIV-AMED-LHCG-AFAM1005.aspx
    ... million. Even with the margin pressure, it generates $200 million or more
    in free cash flow; easily covering its interest cost. It ...

  • No Need To Chase General Mills

    http://stocks.investopedia.com/stock-analysis/2011/No-Need-To-Chase-General-Mills-GIS-CAG-RAH-K-NSRGY-CPB-HNZ0922.aspx
    ... Like most food companies, General Mills is also absorbing a lot of margin
    pressure from cost inflation and promotional spending. ...

  • Cisco's Painful Transition

    http://stocks.investopedia.com/stock-analysis/2011/Ciscos-Painful-Transition-CSCO-HPQ-JNPR-MOT-FFIV-RVBD-EMC0214.aspx
    ... Unfortunately, Cisco is unlikely to win this way and the company is going to have
    to absorb the margin pressure that will come with the erosion of this high ...

  • Cisco: No Growth Today, Try Again Tomorrow

    http://stocks.investopedia.com/stock-analysis/2011/Cisco-No-Growth-Today-Try-Again-Tomorrow-CSCO-HPQ-ALU-JNPR-BRCD-FFIV-RVBD0516.aspx
    ... Huawei and Alcatel-Lucent (NYSE:ALU) have been aggressive on pricing, and that has
    created some margin pressure for Cisco in the low and mid-range market. ...

  • Kellogg's Diet Crashes

    http://stocks.investopedia.com/stock-analysis/2011/Kelloggs-Diet-Crashes-K-KFT-GIS-CAG-UL-PEP-ADM-NSRGY.PK1107.aspx
    ... this is not a free call option - it will require investments in supply chains and
    marketing, and some investors will not like the margin pressure that creates ...

  • Hillenbrand Buried Too Deep?

    http://stocks.investopedia.com/stock-analysis/2010/Hillenbrand-Buried-Too-Deep-HI-CSV-STON-MATW-SCI-STEI0630.aspx
    ... Even more impressive, Hillenbrand achieved those quarterly sales increases
    without suffering any margin pressure. In fact, its trailing ...

  • Can Sysco Sidestep The Squeeze?

    http://stocks.investopedia.com/stock-analysis/2011/Can-Sysco-Sidestep-The-Squeeze-SYY-MCD-YUM-BGS-KFT-ADM-UL1109.aspx
    ... These efforts are probably not going to seem to help much, in the short run, as
    they carry costs of their own and there's that ever-present margin pressure. ...

  • RPM Still Rolling Ahead

    http://stocks.investopedia.com/stock-analysis/2011/RPM-Still-Rolling-Ahead-RPM-SHW-VAL-LOW-KRA-AKOZY-PPG1005.aspx
    ... chemical companies like Dow (NYSE:DOW) and specialty component companies like Kraton
    (NYSE:KRA) still passing on price increases, this margin pressure does not ...

  • Stock Drops In May 2010

    http://stocks.investopedia.com/stock-analysis/2010/Stock-Drops-In-May-2010-DF-JNS-BHI-SHLD-PCLN0601.aspx
    ... suspended guidance for 2010. The company cited "substantial margin pressure
    in our milk business" as retailers squeezed margins. ...

  • Kraft Feels The Pricing Pinch

    http://stocks.investopedia.com/stock-analysis/2011/Kraft-Feels-The-Pricing-Pinch-KFT-K-SLE-PG0215.aspx
    ... Even non-food-related names like consumer goods giant Procter & Gamble (NYSE:PG)
    is experiencing gross margin pressure related to commodity price increases. ...

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