US mid-market companies showed year-on-year revenue growth of 6.79 percent in the third quarter and posted EBITDA gains of 4.89 percent, according to the Golub Capital Middle Market Report.
The figures, measured against the Golub Capital Altman Index, were also broken down into key sectors: consumer, healthcare, industrials and IT. The first three industries each posted revenue increases of over 6 percent, while IT increased that figure by almost 11 percent.
Consumer businesses showed a 7.54 percent increase in its EBITDA, while healthcare reported a 2.19 percent earnings drop. Industrials and IT also showed EBITDA boosts of 9.09 percent and 9.63 percent, respectively.
“Earnings growth began to catch up with revenue growth, suggesting the middle-market firms in our sample continued to improve cost control and productivity,” Golub Capital CEO Lawrence Golub said in a statement.
“The Technology and Industrials sectors showed substantial acceleration of earnings growth,” he continued, “benefiting from a weaker dollar and improved euro-zone economic performance in the form of strong export bookings. In aggregate, the Golub Capital Altman Index results for the third quarter of 2017 are consistent with a 2-3% rate of US GDP growth.”
The data in the report are drawn Golub’s portfolio of more than 150 private mid-market companies, according to the statement. Golub and Edward Altman, a professor of finance at New York University’s Stern School of Business, developed the index used in the report.