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Finance Stocks' Q3 Earnings to Watch Next: ESNT and LTS
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The Q3 earnings season for the Finance sector is almost in its final phase. Results for the third quarter released by finance companies so far reflect an encouraging earnings picture for the industry as a whole. Several industry participants have come up with better-than-expected results, despite a challenging operating environment.
Per our latest Earnings Outlook report, nearly 89% of the S&P 500 companies in the Finance sector have reported results for third-quarter 2016 so far. Total earnings for these companies increased 11.3% year over year on a revenue improvement of 6%. Notably, 72.5% companies have surpassed bottom-line expectations and 73.8% beat on the top line. This highlights a significant improvement in the sector’s performance.
Overall earnings for the S&P 500 stocks in the Finance sector are projected to be up 12% year over year in the third quarter. This compares favorably with a 5.2% decline in the last quarter.
Improving domestic economic factors and recovery in oil prices chiefly contributed to the sector’s recovery. Additionally, an improving labor market and a recovering housing market aided growth.
On the other hand, global concerns and a persistent low interest rate environment were the undermining factors.
Let’s take a look at the two finance stocks that are lined up to report their third-quarter 2016 earnings.
Essent Group Ltd. (ESNT - Free Report) is slated to release third-quarter numbers on Nov 4. The Zacks Consensus Estimate for the stock has remained stable ahead of its earnings release. The estimate of 58 cents per share reflects year-over-year growth of 31.8%.
However, based on our proven model, it is difficult to conclusively predict earnings beat for Essent Group this time around. This is because the stock carries a Zacks Rank #2 (Buy) and Earnings ESP of -5.17%.
A stock needs to have the combination of a positive Earnings ESP and a favorable Zacks Rank – Zacks Rank #1, #2 or #3 (Hold) – for an earnings surprise call.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Nonetheless, the company boasts a decent earnings surprise history. The stock has outperformed the Zacks Consensus Estimate in two of the trailing four quarters, recording an average positive earnings surprise of 2.4%.
Ladenburg Thalmann Financial Services Inc. : The Zacks Consensus Estimate for the stock has remained stable ahead of its earnings release. The estimate of a loss of 5 cents per share reflects a year-over-year improvement of 16.7%.
Further, the stock is less likely to beat the Zacks Consensus Estimate in the forthcoming release, as it carries a Zacks Rank #3 and an Earnings ESP of 0.00%.
In addition, the company does not have a decent earnings surprise history. The stock has surpassed the Zacks Consensus Estimate in only one of the trailing four quarters, recording an average negative earnings surprise of 16.7%.
This week, Zacks researchers have named 7 other stocks that look to break out even sooner than today's Bull of the Day. You can see these time-sensitive tickers free, and access additional trades that are not available to the public. Simply click here>>.
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Finance Stocks' Q3 Earnings to Watch Next: ESNT and LTS
The Q3 earnings season for the Finance sector is almost in its final phase. Results for the third quarter released by finance companies so far reflect an encouraging earnings picture for the industry as a whole. Several industry participants have come up with better-than-expected results, despite a challenging operating environment.
Per our latest Earnings Outlook report, nearly 89% of the S&P 500 companies in the Finance sector have reported results for third-quarter 2016 so far. Total earnings for these companies increased 11.3% year over year on a revenue improvement of 6%. Notably, 72.5% companies have surpassed bottom-line expectations and 73.8% beat on the top line. This highlights a significant improvement in the sector’s performance.
Overall earnings for the S&P 500 stocks in the Finance sector are projected to be up 12% year over year in the third quarter. This compares favorably with a 5.2% decline in the last quarter.
Improving domestic economic factors and recovery in oil prices chiefly contributed to the sector’s recovery. Additionally, an improving labor market and a recovering housing market aided growth.
On the other hand, global concerns and a persistent low interest rate environment were the undermining factors.
Let’s take a look at the two finance stocks that are lined up to report their third-quarter 2016 earnings.
Essent Group Ltd. (ESNT - Free Report) is slated to release third-quarter numbers on Nov 4. The Zacks Consensus Estimate for the stock has remained stable ahead of its earnings release. The estimate of 58 cents per share reflects year-over-year growth of 31.8%.
However, based on our proven model, it is difficult to conclusively predict earnings beat for Essent Group this time around. This is because the stock carries a Zacks Rank #2 (Buy) and Earnings ESP of -5.17%.
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
A stock needs to have the combination of a positive Earnings ESP and a favorable Zacks Rank – Zacks Rank #1, #2 or #3 (Hold) – for an earnings surprise call.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Nonetheless, the company boasts a decent earnings surprise history. The stock has outperformed the Zacks Consensus Estimate in two of the trailing four quarters, recording an average positive earnings surprise of 2.4%.
ESSENT GROUP Price and EPS Surprise
ESSENT GROUP Price and EPS Surprise | ESSENT GROUP Quote
Ladenburg Thalmann Financial Services Inc. : The Zacks Consensus Estimate for the stock has remained stable ahead of its earnings release. The estimate of a loss of 5 cents per share reflects a year-over-year improvement of 16.7%.
Further, the stock is less likely to beat the Zacks Consensus Estimate in the forthcoming release, as it carries a Zacks Rank #3 and an Earnings ESP of 0.00%.
In addition, the company does not have a decent earnings surprise history. The stock has surpassed the Zacks Consensus Estimate in only one of the trailing four quarters, recording an average negative earnings surprise of 16.7%.
LADENBURG THALM Price and EPS Surprise
LADENBURG THALM Price and EPS Surprise | LADENBURG THALM Quote
Confidential from Zacks
This week, Zacks researchers have named 7 other stocks that look to break out even sooner than today's Bull of the Day. You can see these time-sensitive tickers free, and access additional trades that are not available to the public. Simply click here>>.