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Finance Stocks Q2 Earnings on Jul 26: ALLY, RM, EEFT
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The Q2 earnings season is in full swing and you must be keeping an eye on the companies that are set to announce their results. Today, we will be talking about a handful of finance stocks that are slated to report tomorrow.
The Finance sector, one of the biggest sectors in the S&P 500 index, has been facing a challenging operating backdrop since the start of the year. A number of issues including the slowdown of the Chinese economy, a continued volatility in commodity prices, global growth uncertainties and doubts related to U.S. monetary policy have been plaguing the sector.
Moreover, per our latest Earnings Preview article, overall earnings for the Finance sector in second-quarter 2016 are expected to be down 0.4% year over year. Also, revenues are expected to be down 0.5%. Notably, during the first quarter the sector reflected a 6.9% decline in earnings while revenues improved 2.7%.
As investors and market watchers are eager to see how companies will perform in comparison with the market expectations, let’s have a look at what’s in store for the following finance stocks, which are slated to report second quarter results on Jul 26:
Ally Financial Inc. (ALLY - Free Report) is scheduled to announce results before the market opens. The Zacks Consensus Estimate for stock has declined nearly 1.8% the last 30 days to 52 cents per share, while reflecting growth of 12.17% year over year.
Further, the company reported an average earnings surprise of 0.27% over the trailing four quarters.
However, our proven model does not conclusively show that Ally Financial is likely to beat the Zacks Consensus Estimate in the second quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #3 (Hold) or better for this to happen. Unfortunately, with a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%, the stock’s chances of beating the estimates are low.
Regional Management Corp. (RM - Free Report) is slated to announce after the market closes for the day. The Zacks Consensus Estimate for the stock has declined nearly 4.9% the last 30 days to 39 cents per share, reflecting a 6.10% decline on a year-over-year basis.
Additionally, the company has a Zacks Rank #4 with an Earnings ESP of +10.26%, making it difficult to conclusively predict the earnings beat this quarter.
Further, the company reported an average negative earnings surprise of 3.12% over the trailing four quarters.
Euronet Worldwide, Inc. (EEFT - Free Report) is slated to announce results before the market opens. The Zacks Consensus Estimate for the stock has risen nearly 2.4% the last 30 days to 85 cents per share, reflecting a 32.81% improvement on a year-over-year basis.
Notably, the company has a Zacks Rank #2 (Buy) with an Earnings ESP of 0.00%, making it difficult to conclusively predict an earnings beat this quarter.
Further, the company reported an average earnings surprise of 5.19% over the trailing four quarters.
Irrespective of an earnings beat or miss, you should focus on the companies’ fundamentals to make investment decisions.
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Finance Stocks Q2 Earnings on Jul 26: ALLY, RM, EEFT
The Q2 earnings season is in full swing and you must be keeping an eye on the companies that are set to announce their results. Today, we will be talking about a handful of finance stocks that are slated to report tomorrow.
The Finance sector, one of the biggest sectors in the S&P 500 index, has been facing a challenging operating backdrop since the start of the year. A number of issues including the slowdown of the Chinese economy, a continued volatility in commodity prices, global growth uncertainties and doubts related to U.S. monetary policy have been plaguing the sector.
Moreover, per our latest Earnings Preview article, overall earnings for the Finance sector in second-quarter 2016 are expected to be down 0.4% year over year. Also, revenues are expected to be down 0.5%. Notably, during the first quarter the sector reflected a 6.9% decline in earnings while revenues improved 2.7%.
As investors and market watchers are eager to see how companies will perform in comparison with the market expectations, let’s have a look at what’s in store for the following finance stocks, which are slated to report second quarter results on Jul 26:
Ally Financial Inc. (ALLY - Free Report) is scheduled to announce results before the market opens. The Zacks Consensus Estimate for stock has declined nearly 1.8% the last 30 days to 52 cents per share, while reflecting growth of 12.17% year over year.
Further, the company reported an average earnings surprise of 0.27% over the trailing four quarters.
ALLY FINANCIAL Price and EPS Surprise
ALLY FINANCIAL Price and EPS Surprise | ALLY FINANCIAL Quote
However, our proven model does not conclusively show that Ally Financial is likely to beat the Zacks Consensus Estimate in the second quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #3 (Hold) or better for this to happen. Unfortunately, with a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%, the stock’s chances of beating the estimates are low.
Regional Management Corp. (RM - Free Report) is slated to announce after the market closes for the day. The Zacks Consensus Estimate for the stock has declined nearly 4.9% the last 30 days to 39 cents per share, reflecting a 6.10% decline on a year-over-year basis.
Additionally, the company has a Zacks Rank #4 with an Earnings ESP of +10.26%, making it difficult to conclusively predict the earnings beat this quarter.
Further, the company reported an average negative earnings surprise of 3.12% over the trailing four quarters.
REGIONAL MANAGE Price and EPS Surprise
REGIONAL MANAGE Price and EPS Surprise | REGIONAL MANAGE Quote
Euronet Worldwide, Inc. (EEFT - Free Report) is slated to announce results before the market opens. The Zacks Consensus Estimate for the stock has risen nearly 2.4% the last 30 days to 85 cents per share, reflecting a 32.81% improvement on a year-over-year basis.
Notably, the company has a Zacks Rank #2 (Buy) with an Earnings ESP of 0.00%, making it difficult to conclusively predict an earnings beat this quarter.
Further, the company reported an average earnings surprise of 5.19% over the trailing four quarters.
EURONET WORLDWD Price and EPS Surprise
EURONET WORLDWD Price and EPS Surprise | EURONET WORLDWD Quote
Irrespective of an earnings beat or miss, you should focus on the companies’ fundamentals to make investment decisions.
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 >>