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Service Stocks Aug 3 Earnings Roster: VRSK, IT and More

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The widely diversified services sector continued reviving from the pandemic blues through the second quarter of 2021, benefiting from the uptick in both manufacturing and non-manufacturing activities driven by the relaxation of restrictions and increased vaccination drives.

The quarter witnessed growth in major manufacturing industries like computer & electronic products; machinery; electrical equipment, appliances & components; transportation equipment, food, beverage & tobacco products; printing & related support activities; and petroleum & coal products.

Among services industries, notable growth came in from transportation & warehousing; management of companies & support services; retail trade; wholesale Trade; accommodation & food services; mining; utilities; construction; health Care & social assistance; finance & insurance; information; educational services; and professional, scientific & technical Services.

Earnings Picture So Far, and Expectations

The second-quarter earnings for the S&P 500 members of the Business Servicessector have been outstanding, so far. The sector had a commendable start with major players like Equifax (EFX - Free Report) , IHS Markit (INFO - Free Report) , Omnicom (OMC - Free Report) , Interpublic (IPG - Free Report) and Fiserv (FISV - Free Report) beating on both earnings and revenues.

The latest Earnings Outlook suggests that earnings for those S&P 500 members of the business services sector, that have reported results, grew 40.2% year over year on 21.7% revenue growth.

Total quarterly earnings for the S&P 500 members of the sector are currently anticipated to display 35.3% year-on-year growth, and revenues will likely reflect a 18.6% rise. This compares favorably with the 8.5% and 3.9% decline in earnings and revenues in the third quarter of 2020, respectively.

VRSK, IT, FIS, DNB in Spotlight

Here we discuss five business services companies, scheduled to report second-quarter 2021 results on Aug 3.

Our quantitative model suggests that the combination of the following two key ingredients — a

positive Earnings ESP and a Zacks Rank #3 (Hold) or better — increases the odds of a positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Verisk Analytics, Inc. (VRSK - Free Report) : This New Jersey-based provider of data analytics solutions in the United States and internationally is scheduled to report results after market close.

The Zacks Consensus Estimate for revenues is pinned at $733.1 million, indicating growth of 8% from the year-ago reported figure. Strength across Insurance and Energy and Specialized Markets segments is likely to have aided the top line.

The consensus mark for earnings is pegged at $1.34, calling for an increase of 3.9% from the year-earlier quarter’s reported figure. Cost discipline and lower share count are expected to have aided the bottom line.

Verisk has an Earnings ESP of -1.68% and carries a Zacks Rank #3. (Read more: Verisk to Report Q2 Earnings: What's in the Offing?)

Verisk Analytics, Inc. Price and EPS Surprise

Verisk Analytics, Inc. Price and EPS Surprise

Verisk Analytics, Inc. price-eps-surprise | Verisk Analytics, Inc. Quote

Gartner, Inc. (IT - Free Report) : This Connecticut-based research and advisory company will announce results before market open.

The Zacks Consensus Estimate for revenues is pegged at $1.1 billion, suggesting growth of 15.3% from the year-earlier quarter's reported figure, likely to have been driven by segmental strength. The consensus estimate for earnings stands at $1.74, indicating a year-over-year plunge of 45%.

Gartner has an Earnings ESP of 0.00% and carries a Zacks Rank of 3, currently. (Read more: Gartner to Report Q2 Earnings: What's in the Cards?)

Gartner, Inc. Price and EPS Surprise

Gartner, Inc. Price and EPS Surprise

Gartner, Inc. price-eps-surprise | Gartner, Inc. Quote

Fidelity National Information Services (FIS - Free Report) : This Florida-based financial services Technology company’s Zacks Consensus Estimate for earnings is pegged at $1.55, calling for year-over-year growth of 34.8%. The consensus mark for revenues is pinned at $3.4 billion, suggesting a year-over-year jump of 14.4%.

Fidelity National has an Earnings ESP of +1.91% and holds a Zacks Rank #3, at present.

Dun & Bradstreet Holdings, Inc. (DNB - Free Report) : This New Jersey-based business decisioning data and analytics provider has an Earnings ESP of 0.00% and presently carries a Zacks Rank of 3.

The Zacks Consensus Estimate for revenues is pegged at $524.9 million, suggesting an increase of 24.8%, year over year. The consensus mark for earnings is pinned at 24 cents, indicating a fall of 7.7%, year on year.