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The Q2 earnings season is gaining momentum with 189 companies on the S&P 500 index reporting this week. Although it is too early to predict a clear pattern, the 126 companies that have reported results till Friday (Jul 22), more or less confirm the grim earnings projections for the quarter. Based on the hitherto declared results, Q2 is widely expected to be the fifth consecutive quarter to report an earnings decline for the benchmark index.
Plagued by a plethora of macroeconomic issues and continued volatility in the equity market, Q2 earnings estimates for the S&P 500 index have hovered in the negative territory, improving slightly from the last quarter. Per the latest Earnings Trend Report, overall Q2 earnings for the S&P 500 companies are expected to be down 3.4% on a 0.5% decline in revenues. The relative improvement in negative estimate revisions for the quarter is largely due to a turnaround in oil prices and fading effects of the dollar strength. The S&P 500 has also witnessed a dramatic reversal in its fortunes when it shrugged off about 5.3% drop in just two trading sessions (on the Brexit referendum) to record over 2% return for the quarter.
However, the overall Q2 earnings scenario still remains clouded with uncertainty. What is more alarming is that the likely dismal earnings performance is not attributable to the inherent weakness of the Energy sector alone. Rather, downward estimate revisions are expected in almost all the sectors, barring a few. About 9 of the 16 sectors are expected to witness an earnings decline in the quarter under review, with Oil/Energy, Basic Materials, Transportation and Industrial Products being the most notable.
Among the Consulting stocks slated to report this week, let’s take a sneak peek into three major industry players to see how things are shaping up for the upcoming quarterly results.
CEB Inc. is scheduled to report second-quarter 2016 results after the closing bell on Jul 26. Our proven model does not conclusively show that CEB is likely to beat earnings this quarter as it lacks the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for an earnings beat. With a Zacks Rank #3 and an Earnings ESP of 0.00%, CEB fails to meet these criteria.
Huron Consulting Group Inc. (HURN - Free Report) will report second-quarter 2016 results after the closing bell on Jul 26. The company has a Zacks Rank #3 with an Earnings ESP of -3.75%, making it difficult to conclusively predict an earnings beat this quarter.
Navigant Consulting Inc. is likely to report second-quarter 2016 results before the opening bell on Jul 26. With a Zacks Rank #3 and an Earnings ESP of +3.85%, an earnings beat for the impending quarter can be conclusively predicted.
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Consulting Stocks' Q2 Earnings Preview: CEB, HURN & NCI
The Q2 earnings season is gaining momentum with 189 companies on the S&P 500 index reporting this week. Although it is too early to predict a clear pattern, the 126 companies that have reported results till Friday (Jul 22), more or less confirm the grim earnings projections for the quarter. Based on the hitherto declared results, Q2 is widely expected to be the fifth consecutive quarter to report an earnings decline for the benchmark index.
Plagued by a plethora of macroeconomic issues and continued volatility in the equity market, Q2 earnings estimates for the S&P 500 index have hovered in the negative territory, improving slightly from the last quarter. Per the latest Earnings Trend Report, overall Q2 earnings for the S&P 500 companies are expected to be down 3.4% on a 0.5% decline in revenues. The relative improvement in negative estimate revisions for the quarter is largely due to a turnaround in oil prices and fading effects of the dollar strength. The S&P 500 has also witnessed a dramatic reversal in its fortunes when it shrugged off about 5.3% drop in just two trading sessions (on the Brexit referendum) to record over 2% return for the quarter.
However, the overall Q2 earnings scenario still remains clouded with uncertainty. What is more alarming is that the likely dismal earnings performance is not attributable to the inherent weakness of the Energy sector alone. Rather, downward estimate revisions are expected in almost all the sectors, barring a few. About 9 of the 16 sectors are expected to witness an earnings decline in the quarter under review, with Oil/Energy, Basic Materials, Transportation and Industrial Products being the most notable.
Among the Consulting stocks slated to report this week, let’s take a sneak peek into three major industry players to see how things are shaping up for the upcoming quarterly results.
CEB Inc. is scheduled to report second-quarter 2016 results after the closing bell on Jul 26. Our proven model does not conclusively show that CEB is likely to beat earnings this quarter as it lacks the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for an earnings beat. With a Zacks Rank #3 and an Earnings ESP of 0.00%, CEB fails to meet these criteria.
CEB INC Price and EPS Surprise
CEB INC Price and EPS Surprise | CEB INC Quote
Huron Consulting Group Inc. (HURN - Free Report) will report second-quarter 2016 results after the closing bell on Jul 26. The company has a Zacks Rank #3 with an Earnings ESP of -3.75%, making it difficult to conclusively predict an earnings beat this quarter.
HURON CONSLT GP Price and EPS Surprise
HURON CONSLT GP Price and EPS Surprise | HURON CONSLT GP Quote
Navigant Consulting Inc. is likely to report second-quarter 2016 results before the opening bell on Jul 26. With a Zacks Rank #3 and an Earnings ESP of +3.85%, an earnings beat for the impending quarter can be conclusively predicted.
NAVIGANT CONSLT Price and EPS Surprise
NAVIGANT CONSLT Price and EPS Surprise | NAVIGANT CONSLT Quote
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