The earnings season is gradually moving toward the business end with over 800 companies reporting this week. Although it would be unfair to predict any outright pattern at this moment, the 116 S&P 500 companies that have reported results till Oct 21, more or less confirm that overall third-quarter results are likely to improve significantly from the preceding quarters. Based on the hitherto observed pattern, Q3 might well end up in the positive territory after five consecutive quarters of earnings decline for the benchmark index.
Per the latest Earnings Preview report, overall Q3 earnings for the S&P 500 companies are expected to be up 0.1% on a 1.5% growth in revenues. The relative improvement in estimate revisions for the quarter is largely due to a turnaround in the economy and rising oil prices. Experts widely believe that Q3 would be the inflection point with healthy positive growth likely to resume in Q4 and ramp up in the following quarters. Thereafter, earnings growth is expected to be in double-digits in 2017 and beyond.
For Q3 as a whole, about seven of the 16 Zacks sectors are expected to witness an earnings decline, with Oil/Energy, Transportation and Autos being the biggest drag.
Among the Waste Management stocks slated to report their third-quarter 2016 numbers on Oct 27, let’s have a sneak peek at three major players to see how things are shaping up for the upcoming results.
Republic Services Inc. (RSG - Free Report) is scheduled to report its earnings after the closing bell tomorrow. Republic Services’ well structured business model has proved to be its strength, having driven healthy volumes, earnings, free cash flow and solid return on invested capital and cash returns to shareholders over a considerable period of time. Meanwhile, the company has made commendable progress with its multi-year strategic initiatives, which are expected to reduce costs. Republic Services’ cost structure is closely aligned to its “waste indices” which in turn has proved to be a major positive. For the impending quarter, the company has an Earnings ESP of 0.00%, and Zacks Rank #2 (Buy), making an earnings surprise prediction uncertain. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
(Read more: Can Republic Services (RSG - Free Report) Beat Q3 Earnings Estimates?)
Stericycle, Inc. (SRCL - Free Report) is also slated to report its earnings after the closing bell tomorrow. The overall hazardous waste market remains challenging for Stericycle. This has led to increased competition for available volume. Such market conditions have reduced the revenue and profitability of the company’s manufacturing and industrial waste business. The company is also witnessing increased pricing pressure from its SQ (small quantity) customer base. This is a result of the consolidation of physician practices by hospitals and the overall healthcare cost pressures resulting from managed care. For the impending quarter, this Zacks Rank #5 (Strong Sell) stock has an Earnings ESP of 0.00%, making an earnings prediction uncertain.
(Read more: What's in Store for Stericycle (SRCL - Free Report) in Q3 Earnings?)
US Ecology, Inc. will report its results after the closing bell tomorrow. The company is streamlining its business for better long-term growth opportunities. In order to focus more on its core business activities, the company has decided to divest its non-core assets. During the quarter, the company decided to acquire the assets of the Vernon, CA-based liquids and solids waste treatment and storage facility of Evoqua Water Technologies LLC. The transaction will enable it to expand its competitive position in Southern California and better serve customers by leveraging the existing fixed facilities. For the impending quarter, this Zacks Rank #4 (Sell) stock has an Earnings ESP of 0.00%, making surprise prediction uncertain.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
The earnings season is gradually moving toward the business end with over 800 companies reporting this week. Although it would be unfair to predict any outright pattern at this moment, the 116 S&P 500 companies that have reported results till Oct 21, more or less confirm that overall third-quarter results are likely to improve significantly from the preceding quarters. Based on the hitherto observed pattern, Q3 might well end up in the positive territory after five consecutive quarters of earnings decline for the benchmark index.
Per the latest Earnings Preview report, overall Q3 earnings for the S&P 500 companies are expected to be up 0.1% on a 1.5% growth in revenues. The relative improvement in estimate revisions for the quarter is largely due to a turnaround in the economy and rising oil prices. Experts widely believe that Q3 would be the inflection point with healthy positive growth likely to resume in Q4 and ramp up in the following quarters. Thereafter, earnings growth is expected to be in double-digits in 2017 and beyond.
For Q3 as a whole, about seven of the 16 Zacks sectors are expected to witness an earnings decline, with Oil/Energy, Transportation and Autos being the biggest drag.
Among the Waste Management stocks slated to report their third-quarter 2016 numbers on Oct 27, let’s have a sneak peek at three major players to see how things are shaping up for the upcoming results.
Republic Services Inc. (RSG - Free Report) is scheduled to report its earnings after the closing bell tomorrow. Republic Services’ well structured business model has proved to be its strength, having driven healthy volumes, earnings, free cash flow and solid return on invested capital and cash returns to shareholders over a considerable period of time. Meanwhile, the company has made commendable progress with its multi-year strategic initiatives, which are expected to reduce costs. Republic Services’ cost structure is closely aligned to its “waste indices” which in turn has proved to be a major positive. For the impending quarter, the company has an Earnings ESP of 0.00%, and Zacks Rank #2 (Buy), making an earnings surprise prediction uncertain. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
(Read more: Can Republic Services (RSG - Free Report) Beat Q3 Earnings Estimates?)
Stericycle, Inc. (SRCL - Free Report) is also slated to report its earnings after the closing bell tomorrow. The overall hazardous waste market remains challenging for Stericycle. This has led to increased competition for available volume. Such market conditions have reduced the revenue and profitability of the company’s manufacturing and industrial waste business. The company is also witnessing increased pricing pressure from its SQ (small quantity) customer base. This is a result of the consolidation of physician practices by hospitals and the overall healthcare cost pressures resulting from managed care. For the impending quarter, this Zacks Rank #5 (Strong Sell) stock has an Earnings ESP of 0.00%, making an earnings prediction uncertain.
(Read more: What's in Store for Stericycle (SRCL - Free Report) in Q3 Earnings?)
US Ecology, Inc. will report its results after the closing bell tomorrow. The company is streamlining its business for better long-term growth opportunities. In order to focus more on its core business activities, the company has decided to divest its non-core assets. During the quarter, the company decided to acquire the assets of the Vernon, CA-based liquids and solids waste treatment and storage facility of Evoqua Water Technologies LLC. The transaction will enable it to expand its competitive position in Southern California and better serve customers by leveraging the existing fixed facilities. For the impending quarter, this Zacks Rank #4 (Sell) stock has an Earnings ESP of 0.00%, making surprise prediction uncertain.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks' Best Investment Ideas for Long-Term Profit
Today you can gain access to long-term trades with double and triple-digit profit potential rarely available to the public. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more. Want a peek at this private information? Click here >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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