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The Q2 earnings season (or the quarter ended Jun 30, 2016) is on its last leg with almost 87% of S&P 500 companies already having reported their quarterly results.
This will likely be the fifth quarter in a row to display a declining trend in earnings. Per the Zacks Earnings Preview Report, the quarter saw a 4.1% decrease in earnings due to a 1% dip in revenues, both on a year-over-year basis.
However, we note a sequential improvement in earnings. Interestingly, this quarter is witnessing positive revenue growth and is currently reversing the trend displayed in the preceding quarter. Almost 70.7% of the companies surpassed earnings estimates, while 52.7% outpaced top-line expectations.
The Q2 earnings season is critical for investors to ascertain the most attractive picks as the market has somewhat stabilized after Brexit, which shook the global economy in Jun 2016. Post Brexit, investors have become jittery and are resorting to safe haven stocks.
In this scenario, the consumer staples sector might be quite reliable. So far, the consumer staples sector has reported modest results this quarter.
In the consumer staples sector, 77.4% (as of Aug 5) companies in the S&P 500 index have already reported Q2 earnings. Out of these, 70.8% of the companies have posted an earnings beat, while 50.0% surpassed revenue estimates.
In addition, lower gas prices, improved job scenario and increasing consumer confidence have been supporting the improvement in results.
With the current earnings cycle drawing to a close, some more companies are scheduled to report their financial results this week. Let’s take a look at how some of these companies might fare.
Darling Ingredients Inc. (DAR - Free Report) is set to report Q2 results on Aug 11. The company carries a Zacks Rank #3 (Hold) but has an Earnings ESP of -35.00%. Though stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a higher chance on beating on earnings, the company’s negative Earnings ESP complicates surprise prediction. The company reported a negative earnings surprise of 92.31% in the preceding quarter and an average positive surprise of 185.14% for the trailing four quarters. The Zacks Consensus Estimate is currently pegged at 20 cents per share for Q2.
Turning Point Brands, Inc. (TPB - Free Report) is set to report Q2 results on Aug 11. The company carries a Zacks Rank #3 but has an Earnings ESP of 0.00%. Despite a favorable Zacks Rank, the company’s 0.00% Earnings ESP makes surprise prediction difficult. The company reported a positive earnings surprise of 35.00% in the preceding quarter. The Zacks Consensus Estimate is currently pegged at 58 cents per share for Q2.
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Consumer Staples Stocks Q2 Earnings Coming Up: DAR, TPB
The Q2 earnings season (or the quarter ended Jun 30, 2016) is on its last leg with almost 87% of S&P 500 companies already having reported their quarterly results.
This will likely be the fifth quarter in a row to display a declining trend in earnings. Per the Zacks Earnings Preview Report, the quarter saw a 4.1% decrease in earnings due to a 1% dip in revenues, both on a year-over-year basis.
However, we note a sequential improvement in earnings. Interestingly, this quarter is witnessing positive revenue growth and is currently reversing the trend displayed in the preceding quarter. Almost 70.7% of the companies surpassed earnings estimates, while 52.7% outpaced top-line expectations.
The Q2 earnings season is critical for investors to ascertain the most attractive picks as the market has somewhat stabilized after Brexit, which shook the global economy in Jun 2016. Post Brexit, investors have become jittery and are resorting to safe haven stocks.
In this scenario, the consumer staples sector might be quite reliable. So far, the consumer staples sector has reported modest results this quarter.
In the consumer staples sector, 77.4% (as of Aug 5) companies in the S&P 500 index have already reported Q2 earnings. Out of these, 70.8% of the companies have posted an earnings beat, while 50.0% surpassed revenue estimates.
In addition, lower gas prices, improved job scenario and increasing consumer confidence have been supporting the improvement in results.
With the current earnings cycle drawing to a close, some more companies are scheduled to report their financial results this week. Let’s take a look at how some of these companies might fare.
Darling Ingredients Inc. (DAR - Free Report) is set to report Q2 results on Aug 11. The company carries a Zacks Rank #3 (Hold) but has an Earnings ESP of -35.00%. Though stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a higher chance on beating on earnings, the company’s negative Earnings ESP complicates surprise prediction. The company reported a negative earnings surprise of 92.31% in the preceding quarter and an average positive surprise of 185.14% for the trailing four quarters. The Zacks Consensus Estimate is currently pegged at 20 cents per share for Q2.
DARLING INGRDNT Price and EPS Surprise
DARLING INGRDNT Price and EPS Surprise | DARLING INGRDNT Quote
Turning Point Brands, Inc. (TPB - Free Report) is set to report Q2 results on Aug 11. The company carries a Zacks Rank #3 but has an Earnings ESP of 0.00%. Despite a favorable Zacks Rank, the company’s 0.00% Earnings ESP makes surprise prediction difficult. The company reported a positive earnings surprise of 35.00% in the preceding quarter. The Zacks Consensus Estimate is currently pegged at 58 cents per share for Q2.
TURNING PT BRND Price and EPS Surprise
TURNING PT BRND Price and EPS Surprise | TURNING PT BRND Quote
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