We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Business Service Stocks Q2 Earnings Preview: JOB, QRHC, SCRI
Read MoreHide Full Article
We are nearly at the end of this busy earnings season, with almost 92.1% of the total S&P 500 index members having released their second-quarter 2016 results through Aug 10. The second quarter will be the fifth in a row to record an earnings decline for the benchmark index.
Per the latest Earnings Trends report, 454 S&P 500 companies have reported their second-quarter earnings so far with 71.1% topping bottom-line estimates and 52.9% coming in ahead of top-line expectations. The overall report suggests that earnings results have moved south 3.7%, on a 0.7% decrease in revenues from the same period last year.
With a majority of the sectors having released 100% of their results, 7 out of 16 Zacks sectors are expected to hover in the negative territory in Q2, with Energy, Basic Materials, Aerospace and Transportation suffering double-digit declines. However, the remaining nine sectors are expected to see positive earnings growth, with Conglomerates seeing the highest growth of 20.6%.
The Business Services sector is, however, looking reasonably good. For the sector, earnings are expected to grow 6%, while sales are likely to rise 7.4% over the last year. The projected improvement is largely due to a recovery in oil prices in the second quarter and the faded effects of the dollar strength.
Let’s have a sneak peek at three major industry players to see how things are gearing up for the upcoming results.
Gee Group Inc. (JOB - Free Report) is expected to report earnings on Aug 12. Headquartered in Naperville, IL, the company offers professional staffing services and solutions.
Per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for it to beat estimates. For the to-be-reported quarter, this Zacks Rank #3 stock has an Earnings ESP of 0.00%, thus making an earnings prediction uncertain. Over the trailing four quarters the company posted an average negative surprise of 37.50%.
Quest Resource Holding Corporation (QRHC - Free Report) is expected to report earnings on Aug 12. Based in Frisco, TX, the company offers environmental consulting and management solutions. For the to-be-reported quarter, this Zacks Rank #3 stock has an Earnings ESP of 0.00%, thus making an earnings prediction uncertain. Over the trailing four quarters, the company delivered an average negative surprise of 50%.
Social Reality, Inc. is expected to report earnings on Aug 15. Headquartered in Los Angeles, CA, the company offers automated digital platform technology service and social management software services for internet advertising. For the to-be-reported quarter, this Zacks Rank #3 stock has an Earnings ESP of 0.00%, thus making an earnings prediction uncertain. Over the trailing four quarters, the company posted an average negative surprise of 116.67%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Business Service Stocks Q2 Earnings Preview: JOB, QRHC, SCRI
We are nearly at the end of this busy earnings season, with almost 92.1% of the total S&P 500 index members having released their second-quarter 2016 results through Aug 10. The second quarter will be the fifth in a row to record an earnings decline for the benchmark index.
Per the latest Earnings Trends report, 454 S&P 500 companies have reported their second-quarter earnings so far with 71.1% topping bottom-line estimates and 52.9% coming in ahead of top-line expectations. The overall report suggests that earnings results have moved south 3.7%, on a 0.7% decrease in revenues from the same period last year.
With a majority of the sectors having released 100% of their results, 7 out of 16 Zacks sectors are expected to hover in the negative territory in Q2, with Energy, Basic Materials, Aerospace and Transportation suffering double-digit declines. However, the remaining nine sectors are expected to see positive earnings growth, with Conglomerates seeing the highest growth of 20.6%.
The Business Services sector is, however, looking reasonably good. For the sector, earnings are expected to grow 6%, while sales are likely to rise 7.4% over the last year. The projected improvement is largely due to a recovery in oil prices in the second quarter and the faded effects of the dollar strength.
Let’s have a sneak peek at three major industry players to see how things are gearing up for the upcoming results.
Gee Group Inc. (JOB - Free Report) is expected to report earnings on Aug 12. Headquartered in Naperville, IL, the company offers professional staffing services and solutions.
Per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for it to beat estimates. For the to-be-reported quarter, this Zacks Rank #3 stock has an Earnings ESP of 0.00%, thus making an earnings prediction uncertain. Over the trailing four quarters the company posted an average negative surprise of 37.50%.
GEE GROUP INC Price and EPS Surprise
GEE GROUP INC Price and EPS Surprise | GEE GROUP INC Quote
Quest Resource Holding Corporation (QRHC - Free Report) is expected to report earnings on Aug 12. Based in Frisco, TX, the company offers environmental consulting and management solutions. For the to-be-reported quarter, this Zacks Rank #3 stock has an Earnings ESP of 0.00%, thus making an earnings prediction uncertain. Over the trailing four quarters, the company delivered an average negative surprise of 50%.
QUEST RES HLDG Price and EPS Surprise
QUEST RES HLDG Price and EPS Surprise | QUEST RES HLDG Quote
Social Reality, Inc. is expected to report earnings on Aug 15. Headquartered in Los Angeles, CA, the company offers automated digital platform technology service and social management software services for internet advertising. For the to-be-reported quarter, this Zacks Rank #3 stock has an Earnings ESP of 0.00%, thus making an earnings prediction uncertain. Over the trailing four quarters, the company posted an average negative surprise of 116.67%.
SOCIAL REALITY Price and EPS Surprise
SOCIAL REALITY Price and EPS Surprise | SOCIAL REALITY Quote
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>