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Outsourcing Stocks to Watch for Earnings on Aug 3: G & TTEC
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As second-quarter results continue to flow in, we can see a ray of light at the end of the tunnel, as earnings have started to show a slight improvement. Over 60% of the total S&P 500 index members have released their second-quarter results through Jul 29. Following the disappointing trend set in other recent quarters, growth continues to remain elusive. The second quarter is expected to be the fifth in a row to suffer an earnings decline for the benchmark index. However, the pace of decline has slowed down from previous periods.
The overall trend is more or less defined for all sectors, except Retail and Utilities, as the two still have more than half of their earnings to report. This is going to be yet another hectic week as far as earnings releases are concerned with 116 S&P500 companies queued up to report their numbers.
Per the latest Earnings Preview report, 317 S&P 500 companies have reported their second-quarter earnings so far with 72.9% topping bottom-line estimates and 53.6% coming in ahead of top-line expectations. The overall report suggests that earnings results have moved south 3.3%, on a 0.9% decrease in revenues from the same period last year.
The poor earnings performance is majorly attributable to the inherent weakness of the Energy sector. Eight out of 16 Zacks sectors are expected to see growth in negative territory in Q2, with Energy, Basic Materials, Aerospace and Transportation suffering double-digit declines. However, Autos, Construction, Conglomerates, Utilities, Medical, Retail, Consumer Discretionary and Business Services – eight in all – are projected to land up on the brighter side, booking growth this season.
The Business Services sector is looking reasonably good. For the sector, earnings are expected to grow 5.7%, while sales are touted to rise 6.6% over last year. The projected improvement is largely due to a recovery in oil prices in the second quarter and the faded effects of the dollar strength.
On that note let’s take a look at a couple of outsourcing stocks – a part of the broader Business Services sector – that are expected to release their results on Aug 3.
Genpact Limited (G - Free Report) is set to report second-quarter results after market closes on Aug 3. The company provides business process outsourcing and information technology management services across the world.
A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. Genpact has an Earnings ESP of 0.00% and carries a Zacks Rank 3, which makes earnings prediction uncertain. Over the trailing four quarters, the company has beaten estimates on all occasions, with an average surprise of 11.79%.
TeleTech Holdings Inc. (TTEC - Free Report) is set to report second-quarter results after market closes on Aug 3. The company provides customer engagement management solutions to customers across the United States, the Philippines, Latin America, Europe, the Middle East, Africa, the Asia Pacific, and Canada.
TeleTech has an Earnings ESP of 0.00% and carries a Zacks Rank 3. Over the trailing four quarters, the company has beaten estimates only once, leading to a negative average surprise of 14.33%.
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Outsourcing Stocks to Watch for Earnings on Aug 3: G & TTEC
As second-quarter results continue to flow in, we can see a ray of light at the end of the tunnel, as earnings have started to show a slight improvement. Over 60% of the total S&P 500 index members have released their second-quarter results through Jul 29. Following the disappointing trend set in other recent quarters, growth continues to remain elusive. The second quarter is expected to be the fifth in a row to suffer an earnings decline for the benchmark index. However, the pace of decline has slowed down from previous periods.
The overall trend is more or less defined for all sectors, except Retail and Utilities, as the two still have more than half of their earnings to report. This is going to be yet another hectic week as far as earnings releases are concerned with 116 S&P500 companies queued up to report their numbers.
Per the latest Earnings Preview report, 317 S&P 500 companies have reported their second-quarter earnings so far with 72.9% topping bottom-line estimates and 53.6% coming in ahead of top-line expectations. The overall report suggests that earnings results have moved south 3.3%, on a 0.9% decrease in revenues from the same period last year.
The poor earnings performance is majorly attributable to the inherent weakness of the Energy sector. Eight out of 16 Zacks sectors are expected to see growth in negative territory in Q2, with Energy, Basic Materials, Aerospace and Transportation suffering double-digit declines. However, Autos, Construction, Conglomerates, Utilities, Medical, Retail, Consumer Discretionary and Business Services – eight in all – are projected to land up on the brighter side, booking growth this season.
The Business Services sector is looking reasonably good. For the sector, earnings are expected to grow 5.7%, while sales are touted to rise 6.6% over last year. The projected improvement is largely due to a recovery in oil prices in the second quarter and the faded effects of the dollar strength.
On that note let’s take a look at a couple of outsourcing stocks – a part of the broader Business Services sector – that are expected to release their results on Aug 3.
Genpact Limited (G - Free Report) is set to report second-quarter results after market closes on Aug 3. The company provides business process outsourcing and information technology management services across the world.
A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. Genpact has an Earnings ESP of 0.00% and carries a Zacks Rank 3, which makes earnings prediction uncertain. Over the trailing four quarters, the company has beaten estimates on all occasions, with an average surprise of 11.79%.
GENPACT LTD Price and EPS Surprise
GENPACT LTD Price and EPS Surprise | GENPACT LTD Quote
TeleTech Holdings Inc. (TTEC - Free Report) is set to report second-quarter results after market closes on Aug 3. The company provides customer engagement management solutions to customers across the United States, the Philippines, Latin America, Europe, the Middle East, Africa, the Asia Pacific, and Canada.
TeleTech has an Earnings ESP of 0.00% and carries a Zacks Rank 3. Over the trailing four quarters, the company has beaten estimates only once, leading to a negative average surprise of 14.33%.
TELETECH HLDGS Price and EPS Surprise
TELETECH HLDGS Price and EPS Surprise | TELETECH HLDGS Quote
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