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Business Service Stocks' Q3 Earnings on Oct 21: IPG, MAN
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The earnings season is off to a good start, with companies reporting decent earnings and revenue growth, compared to the last few reported quarters. We are further looking forward to a larger number of sectors coming up with positives surprises for the quarter.
If this trend continues in the upcoming releases, we will move into the positive territory, after five consecutive quarters of earnings declines for the S&P 500 index.
Per the latest Earnings Trends report, 81 S&P 500 companies have reported their earnings so far, accounting for 19.9% of the index’s total market capitalization, with 80.2% topping EPS estimates and 63% coming in ahead of top-line expectations. According to the report, revenues for the 81 companies are up 3.8% from the same period last year.
However, the report projects that earnings of all the S&P 500 companies combined will move south 1% from the year-ago period, whereas revenue will rise 1.5%.
Eight out of 16 Zacks sectors are expected to witness a decline in earnings in the third quarter, with Oil/Energy, Autos and Transportation being the biggest drag. However, the Retail/Wholesale sector is seeing improvement in spite of overseas turmoil, fluctuating commodity prices and Fed rate-related controversies.
The Business Services sector is looking reasonably good. For the sector, earnings are expected to grow 7.3%, while sales are touted to rise 8.6% over the last year. The projected improvement is majorly driven by the growing momentum in the economy as a whole and the job market during the quarter.
Let’s have a sneak peek at two major Business Service Stocks scheduled to report their third-quarter 2016 results tomorrow.
Interpublic Group Of Companies, Inc. (IPG - Free Report) is scheduled to report results before the opening bell. Notably, over the trailing four quarters, the company delivered an average positive surprise of approximately 29.74%, beating estimates thrice.
During the quarter, the company acquired a U.K.-based company, Flipside. The acquisition enables Weber Shandwick deliver a fully integrated, modern digital offering that will be profitable for both B2C and B2B marketers. However, Interpublic derives a major portion of its revenues from outside the U.S., which exposes it to foreign currency translation impacts particularly after the Brexit and is likely to affect its margins.
ManpowerGroup Inc. (MAN - Free Report) is slated to report its results before the opening bell. In the previous quarter, the company surpassed the Zacks Consensus Estimate by 5.3%. Notably, it beat the Zacks Consensus Estimate in each of the last four quarters, with an average positive earnings surprise of 10.1%. However, it remains to be seen if the company will be able to keep its earnings streak alive in this quarter as well.
Our proven model does not conclusively show that ManpowerGroup is likely to beat earnings estimates this quarter. ManpowerGroup has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at $1.71. The company carries a Zacks Rank #3.
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Business Service Stocks' Q3 Earnings on Oct 21: IPG, MAN
The earnings season is off to a good start, with companies reporting decent earnings and revenue growth, compared to the last few reported quarters. We are further looking forward to a larger number of sectors coming up with positives surprises for the quarter.
If this trend continues in the upcoming releases, we will move into the positive territory, after five consecutive quarters of earnings declines for the S&P 500 index.
Per the latest Earnings Trends report, 81 S&P 500 companies have reported their earnings so far, accounting for 19.9% of the index’s total market capitalization, with 80.2% topping EPS estimates and 63% coming in ahead of top-line expectations. According to the report, revenues for the 81 companies are up 3.8% from the same period last year.
However, the report projects that earnings of all the S&P 500 companies combined will move south 1% from the year-ago period, whereas revenue will rise 1.5%.
Eight out of 16 Zacks sectors are expected to witness a decline in earnings in the third quarter, with Oil/Energy, Autos and Transportation being the biggest drag. However, the Retail/Wholesale sector is seeing improvement in spite of overseas turmoil, fluctuating commodity prices and Fed rate-related controversies.
The Business Services sector is looking reasonably good. For the sector, earnings are expected to grow 7.3%, while sales are touted to rise 8.6% over the last year. The projected improvement is majorly driven by the growing momentum in the economy as a whole and the job market during the quarter.
Let’s have a sneak peek at two major Business Service Stocks scheduled to report their third-quarter 2016 results tomorrow.
Interpublic Group Of Companies, Inc. (IPG - Free Report) is scheduled to report results before the opening bell. Notably, over the trailing four quarters, the company delivered an average positive surprise of approximately 29.74%, beating estimates thrice.
During the quarter, the company acquired a U.K.-based company, Flipside. The acquisition enables Weber Shandwick deliver a fully integrated, modern digital offering that will be profitable for both B2C and B2B marketers. However, Interpublic derives a major portion of its revenues from outside the U.S., which exposes it to foreign currency translation impacts particularly after the Brexit and is likely to affect its margins.
For the impending quarter, the company has an Earnings ESPof 0.00%, and Zacks Rank #3 (Hold), making an earnings prediction uncertain. You can see the complete list of today’s Zacks #1 Rank stocks here.
INTERPUBLIC GRP Price and EPS Surprise
INTERPUBLIC GRP Price and EPS Surprise | INTERPUBLIC GRP Quote
Read More: What's in Store for Interpublic (IPG - Free Report) this Earnings Season?
ManpowerGroup Inc. (MAN - Free Report) is slated to report its results before the opening bell. In the previous quarter, the company surpassed the Zacks Consensus Estimate by 5.3%. Notably, it beat the Zacks Consensus Estimate in each of the last four quarters, with an average positive earnings surprise of 10.1%. However, it remains to be seen if the company will be able to keep its earnings streak alive in this quarter as well.
Our proven model does not conclusively show that ManpowerGroup is likely to beat earnings estimates this quarter. ManpowerGroup has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at $1.71. The company carries a Zacks Rank #3.
MANPOWER INC WI Price and EPS Surprise
MANPOWER INC WI Price and EPS Surprise | MANPOWER INC WI Quote
Read More: ManpowerGroup (MAN - Free Report) to Post Q3 Earnings: What's in Store?
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Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>