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Business Service Stocks' Q2 Earnings: TRU, PRGX, EXAM, EVRI
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The Q2 earnings season is gaining momentum with 189 companies on the S&P 500 index reporting this week. Although it is too early to predict any clear pattern, the 126 companies that have reported results till Friday (Jul 22), more or less confirm the grim earnings projections for the quarter. Based on the hitherto declared results, Q2 is widely expected to be the fifth consecutive quarter to report an earnings decline for the benchmark index.
Plagued by a plethora of macroeconomic issues and continued volatility in the equity market, Q2 earnings estimates for the S&P 500 index have hovered in the negative territory, improving slightly from the last quarter. Per the latest Earnings Trend Report, overall Q2 earnings for the S&P 500 companies are expected to be down 3.4% on a 0.5% decline in revenues. The relative improvement in negative estimate revisions for the quarter is largely due to a turnaround in oil prices and fading effects of the dollar strength. The S&P 500 has also witnessed a dramatic reversal in its fortunes when it shrugged off about 5.3% drop in just two trading sessions (on the Brexit referendum) to record over 2% return for the quarter.
However, the overall Q2 earnings scenario still remains clouded with uncertainty. What is more alarming is that the likely dismal earnings performance is not attributable to the inherent weakness of the Energy sector alone. Rather, downward estimate revisions are expected in almost all sectors, barring a few. About nine of the 16 sectors are expected to witness an earnings decline in Q2, with Oil/Energy, Basic Materials, Transportation and Industrial Products being the most notable.
Among the Business Services stocks slated to report this week, let’s have a sneak peek at four major industry players to see how things are shaping up for the upcoming quarterly results.
TransUnion (TRU - Free Report) is scheduled to report Q2 results after the closing bell on Jul 26. During the quarter, TransUnion acquired Auditz LLC, a healthcare services firm that utilizes sophisticated proprietary technology to help healthcare providers identify and recover payments. Notably, Auditz will bring new capabilities to TransUnion’s healthcare business that will prove beneficial for its customers and further enhance its competitive strength and market value proposition. Although the acquisition is not likely to make any significant contribution in the to-be-reported quarter, its role in attracting potential revenue contribution from other clients is irrefutable.
Our proven model does not conclusively show that TransUnion is likely to beat earnings this quarter as it lacks the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for an earnings beat. With a Zacks Rank #3 and an Earnings ESP of 0.00%, TransUnion fails to meet these criteria. (Read more: What's in Store for TransUnion This Earnings Season?)
PRGX Global, Inc. will report Q2 results before the opening bell on Jul 26. This leading provider of accounts payable recovery audit services has a Zacks Rank #2 with an Earnings ESP of 0.00%, making it difficult to conclusively predict an earnings beat this quarter.
ExamWorks Group, Inc. is likely to report Q2 results on Jul 26. With a Zacks Rank #3 and an Earnings ESP of 0.00%, an earnings beat for the impending quarter cannot be conclusively predicted for this independent medical examinations and bill reviewer.
Everi Holdings Inc. (EVRI - Free Report) is expected to report Q2 results on Jul 26. With a Zacks Rank #3 and an Earnings ESP of 0.00%, an earnings beat for the impending quarter cannot be conclusively predicted for this video and mechanical reel gaming content and technology solutions provider.
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Business Service Stocks' Q2 Earnings: TRU, PRGX, EXAM, EVRI
The Q2 earnings season is gaining momentum with 189 companies on the S&P 500 index reporting this week. Although it is too early to predict any clear pattern, the 126 companies that have reported results till Friday (Jul 22), more or less confirm the grim earnings projections for the quarter. Based on the hitherto declared results, Q2 is widely expected to be the fifth consecutive quarter to report an earnings decline for the benchmark index.
Plagued by a plethora of macroeconomic issues and continued volatility in the equity market, Q2 earnings estimates for the S&P 500 index have hovered in the negative territory, improving slightly from the last quarter. Per the latest Earnings Trend Report, overall Q2 earnings for the S&P 500 companies are expected to be down 3.4% on a 0.5% decline in revenues. The relative improvement in negative estimate revisions for the quarter is largely due to a turnaround in oil prices and fading effects of the dollar strength. The S&P 500 has also witnessed a dramatic reversal in its fortunes when it shrugged off about 5.3% drop in just two trading sessions (on the Brexit referendum) to record over 2% return for the quarter.
However, the overall Q2 earnings scenario still remains clouded with uncertainty. What is more alarming is that the likely dismal earnings performance is not attributable to the inherent weakness of the Energy sector alone. Rather, downward estimate revisions are expected in almost all sectors, barring a few. About nine of the 16 sectors are expected to witness an earnings decline in Q2, with Oil/Energy, Basic Materials, Transportation and Industrial Products being the most notable.
Among the Business Services stocks slated to report this week, let’s have a sneak peek at four major industry players to see how things are shaping up for the upcoming quarterly results.
TransUnion (TRU - Free Report) is scheduled to report Q2 results after the closing bell on Jul 26. During the quarter, TransUnion acquired Auditz LLC, a healthcare services firm that utilizes sophisticated proprietary technology to help healthcare providers identify and recover payments. Notably, Auditz will bring new capabilities to TransUnion’s healthcare business that will prove beneficial for its customers and further enhance its competitive strength and market value proposition. Although the acquisition is not likely to make any significant contribution in the to-be-reported quarter, its role in attracting potential revenue contribution from other clients is irrefutable.
Our proven model does not conclusively show that TransUnion is likely to beat earnings this quarter as it lacks the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for an earnings beat. With a Zacks Rank #3 and an Earnings ESP of 0.00%, TransUnion fails to meet these criteria. (Read more: What's in Store for TransUnion This Earnings Season?)
TRANSUNION Price and EPS Surprise
TRANSUNION Price and EPS Surprise | TRANSUNION Quote
PRGX Global, Inc. will report Q2 results before the opening bell on Jul 26. This leading provider of accounts payable recovery audit services has a Zacks Rank #2 with an Earnings ESP of 0.00%, making it difficult to conclusively predict an earnings beat this quarter.
PRGX GLOBAL INC Price and EPS Surprise
PRGX GLOBAL INC Price and EPS Surprise | PRGX GLOBAL INC Quote
ExamWorks Group, Inc. is likely to report Q2 results on Jul 26. With a Zacks Rank #3 and an Earnings ESP of 0.00%, an earnings beat for the impending quarter cannot be conclusively predicted for this independent medical examinations and bill reviewer.
EXAMWORKS GROUP Price and EPS Surprise
EXAMWORKS GROUP Price and EPS Surprise | EXAMWORKS GROUP Quote
Everi Holdings Inc. (EVRI - Free Report) is expected to report Q2 results on Jul 26. With a Zacks Rank #3 and an Earnings ESP of 0.00%, an earnings beat for the impending quarter cannot be conclusively predicted for this video and mechanical reel gaming content and technology solutions provider.
EVERI HOLDINGS Price and EPS Surprise
EVERI HOLDINGS Price and EPS Surprise | EVERI HOLDINGS Quote
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