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Finance Stocks' Q2 Earnings Slated on Aug 8: BAP, LC & More
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The industry backdrop hasn’t improved much for the Finance sector. Global growth concerns and low interest rate environment continue to adversely impact the companies’ performance. However, rebound in oil prices and positive domestic economic factors alleviated the pressure on the finance industry to some extent.
Performance of the companies so far reflects a marginal improvement over the prior quarter. Per the latest Zacks Earnings Outlook report, for the second-quarter 2016, overall earnings of the S&P 500 stocks in the Finance sector are expected to be down 5.2% year over year. This compares with a 6.9% decline in earnings in the previous quarter. Revenues are expected to decline 0.4% versus a 2.7% increase in the prior quarter.
Notably, 95.6% of the S&P 500 companies in the finance sector have reported results already. Total earnings for these companies decreased 7.4% year over year on revenue decline of 3.6%. However, 65.1% companies have surpassed bottom-line expectations and 54.7% beat on top line.
Our quantitative model offers some insights into stocks that are about to report their earnings. Per the model, in order to be confident of an earnings beat, a stock needs to have the right combination of the two key criteria, a favorable Zacks Rank – Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) – and a positive Earnings ESP.
Earnings ESP is our proprietary methodology for identifying stocks that have high chances of surprising in their upcoming earnings announcement. It shows the percentage of difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Our research shows that for stocks with this combination, the chance of a positive earnings surprise is as high as 70%.
Let’s see what’s in store for the following companies that are scheduled to report second-quarter results on Aug 8.
Credicorp Ltd. (BAP - Free Report) : Estimates has been stable ahead of the company’s earnings release. The Zacks Consensus Estimate of $3.03 for the company reflects a year-over-year increase of 1.2%.
Notably, the company has a Zacks Rank #2 with an Earnings ESP of 0.00%, making it difficult to conclusively predict an earnings beat this quarter. Though Zacks Rank #2 increases the predictive power of our model, we also need a positive Earnings ESP to be sure of an earnings beat.
The company reported an average positive earnings surprise of 6.1% in the trailing four quarters.
PRA Group, Inc. (PRAA - Free Report) : The Zacks Consensus Estimate of 82 cents for the company reflects a year-over-year decrease of 22.5%. While estimates remained unchanged ahead of the company’s release of second-quarter results, we are not confident of an earnings beat as the company has a Zacks Rank #4 (Sell) with an Earnings ESP of 0.00%.
Notably, the company reported an average negative earnings surprise of 8.5% in the trailing four quarters.
LendingClub Corporation (LC - Free Report) : The company is expected to record a loss in the second quarter. The Zacks Consensus Estimate stands at a loss of 4 cents.
Estimates have been stable lately, ahead of the release of the company’s quarterly results. However, the combination of a Zacks Rank #3 with an Earnings ESP of 0.00% makes prediction difficult for this company as well.
Notably, the company reported an average positive earnings surprise of 100% in the trailing four quarters.
Main Street Capital Corporation (MAIN - Free Report) : The Zacks Consensus Estimate of 54 cents reflects solid year-over-year decline of 2.7%. Also, we are not confident of an earnings beat as the company has a Zacks Rank #2 with an Earnings ESP of 0.00%.
Notably, estimates have been stable lately, prior to the company’s second-quarter earnings release. The company reported average positive earnings surprise of 1.9% in the trailing four quarters.
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Finance Stocks' Q2 Earnings Slated on Aug 8: BAP, LC & More
The industry backdrop hasn’t improved much for the Finance sector. Global growth concerns and low interest rate environment continue to adversely impact the companies’ performance. However, rebound in oil prices and positive domestic economic factors alleviated the pressure on the finance industry to some extent.
Performance of the companies so far reflects a marginal improvement over the prior quarter. Per the latest Zacks Earnings Outlook report, for the second-quarter 2016, overall earnings of the S&P 500 stocks in the Finance sector are expected to be down 5.2% year over year. This compares with a 6.9% decline in earnings in the previous quarter. Revenues are expected to decline 0.4% versus a 2.7% increase in the prior quarter.
Notably, 95.6% of the S&P 500 companies in the finance sector have reported results already. Total earnings for these companies decreased 7.4% year over year on revenue decline of 3.6%. However, 65.1% companies have surpassed bottom-line expectations and 54.7% beat on top line.
Our quantitative model offers some insights into stocks that are about to report their earnings. Per the model, in order to be confident of an earnings beat, a stock needs to have the right combination of the two key criteria, a favorable Zacks Rank – Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) – and a positive Earnings ESP.
Earnings ESP is our proprietary methodology for identifying stocks that have high chances of surprising in their upcoming earnings announcement. It shows the percentage of difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Our research shows that for stocks with this combination, the chance of a positive earnings surprise is as high as 70%.
Let’s see what’s in store for the following companies that are scheduled to report second-quarter results on Aug 8.
Credicorp Ltd. (BAP - Free Report) : Estimates has been stable ahead of the company’s earnings release. The Zacks Consensus Estimate of $3.03 for the company reflects a year-over-year increase of 1.2%.
Notably, the company has a Zacks Rank #2 with an Earnings ESP of 0.00%, making it difficult to conclusively predict an earnings beat this quarter. Though Zacks Rank #2 increases the predictive power of our model, we also need a positive Earnings ESP to be sure of an earnings beat.
The company reported an average positive earnings surprise of 6.1% in the trailing four quarters.
CREDICORP LTD Price and EPS Surprise
CREDICORP LTD Price and EPS Surprise | CREDICORP LTD Quote
PRA Group, Inc. (PRAA - Free Report) : The Zacks Consensus Estimate of 82 cents for the company reflects a year-over-year decrease of 22.5%. While estimates remained unchanged ahead of the company’s release of second-quarter results, we are not confident of an earnings beat as the company has a Zacks Rank #4 (Sell) with an Earnings ESP of 0.00%.
Notably, the company reported an average negative earnings surprise of 8.5% in the trailing four quarters.
PRA GROUP INC Price and EPS Surprise
PRA GROUP INC Price and EPS Surprise | PRA GROUP INC Quote
LendingClub Corporation (LC - Free Report) : The company is expected to record a loss in the second quarter. The Zacks Consensus Estimate stands at a loss of 4 cents.
Estimates have been stable lately, ahead of the release of the company’s quarterly results. However, the combination of a Zacks Rank #3 with an Earnings ESP of 0.00% makes prediction difficult for this company as well.
Notably, the company reported an average positive earnings surprise of 100% in the trailing four quarters.
LENDINGCLUB CP Price and EPS Surprise
LENDINGCLUB CP Price and EPS Surprise | LENDINGCLUB CP Quote
Main Street Capital Corporation (MAIN - Free Report) : The Zacks Consensus Estimate of 54 cents reflects solid year-over-year decline of 2.7%. Also, we are not confident of an earnings beat as the company has a Zacks Rank #2 with an Earnings ESP of 0.00%.
Notably, estimates have been stable lately, prior to the company’s second-quarter earnings release. The company reported average positive earnings surprise of 1.9% in the trailing four quarters.
MAIN STREET CAP Price and EPS Surprise
MAIN STREET CAP Price and EPS Surprise | MAIN STREET CAP Quote
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