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Consumer Stocks Q3 Earnings Lineup for Nov 2: TTWO, LOPE, SP
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The third quarter of 2016 reporting cycle is looking good, turning around the negative trend seen in the past five quarters. The earnings trend in the quarter has been in the positive territory and is expected to pace up as we proceed with the second leg of the reporting cycle. With relatively more positive earnings and revenue surprises, as well as fairly stable estimates for the fourth quarter, we believe the positive trend witnessed in the third quarter is the start to the growth era.
Per the latest Earnings Preview report (as of Oct 28, 2016), 291 S&P 500 members – that collectively account for 58.2% of the index’s total market capitalization – reported earnings results. Total earnings for these index members rose 2.2% while revenues increased 1.3%, with 73.5% beating EPS estimates and 57.4% beating revenue estimates. The percentage of companies that have been able to beat both EPS and revenue estimates is tracking 48.1% at this stage.
This clearly reveals an improvement from the previous quarters and remains on track to produce the best growth in six quarters. Looking at the third quarter as a whole and putting together the actual results of 291 index members with estimates for the upcoming 209 companies, total S&P 500 earnings are anticipated to be up 2% driven by 1.4% higher revenues.
That said, we quickly jump on to the Consumer Discretionary sector, which has seen 40% of its S&P 500 members report their third-quarter results with a 64.3% earnings beat and 50% revenue beat ratios. The third-quarter forecasts show that earnings for the Consumer Discretionary sector are expected to inch up 0.2%, whereas revenues are anticipated to surge 11.7%.
Of the earnings yet to be reported, we will here focus on three Consumer Discretionary stocks which are expected to report third-quarter 2016 results on Nov 2.
To start with we expect Take-Two Interactive Software Inc. (TTWO - Free Report) to beat expectations when it reports earnings. This view is supported by the company’s Earnings ESP of 14.29% as its Most Accurate estimate of 16 cents stands above the Zacks Consensus Estimate of 14 cents. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Also, this developer, publisher and marketer of interactive entertainment solutions for consumers’ worldwide carries a Zacks Rank #3 (Hold). This satisfies the requisites of our proven model, indicating that the stock is likely to beat estimates. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 214%.
Next, the earnings picture for Grand Canyon Education Inc. (LOPE - Free Report) – a provider of post-secondary education services in the U.S. and Canada –looks good. The company has outpaced the Zacks Consensus Estimate by an average of 6.3% over the past four quarters, with a beat in each quarter. We expect the company to beat expectations when it reports earnings. It currently holds a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This view is supported by the company’s Earnings ESP of 1.70% as its Most Accurate estimate of 60 cents stands above the Zacks Consensus Estimate of 59 cents.
Also in the queue is SP Plus Corporation (SP - Free Report) , a provider of management services including parking management, ground transportation and other ancillary services in the U.S. We are unsure whether this Chicago, IL-based company will be able to post a positive earnings surprise in the quarter to be reported. The company’s past performance reveals that it has underperformed the Zacks Consensus Estimate by an average of 13.4% over the trailing four quarters. The company’s Zacks Rank #3 when combined with an Earnings ESP of 0.00%, indicates that the chances of a beat are minimal. Its Most Accurate estimate and the Zacks Consensus Estimate – both stand at 36 cents. A stock generally needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for a beat. Thus, we would wait and see what is in store for this company in the upcoming results.
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>
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Consumer Stocks Q3 Earnings Lineup for Nov 2: TTWO, LOPE, SP
The third quarter of 2016 reporting cycle is looking good, turning around the negative trend seen in the past five quarters. The earnings trend in the quarter has been in the positive territory and is expected to pace up as we proceed with the second leg of the reporting cycle. With relatively more positive earnings and revenue surprises, as well as fairly stable estimates for the fourth quarter, we believe the positive trend witnessed in the third quarter is the start to the growth era.
Per the latest Earnings Preview report (as of Oct 28, 2016), 291 S&P 500 members – that collectively account for 58.2% of the index’s total market capitalization – reported earnings results. Total earnings for these index members rose 2.2% while revenues increased 1.3%, with 73.5% beating EPS estimates and 57.4% beating revenue estimates. The percentage of companies that have been able to beat both EPS and revenue estimates is tracking 48.1% at this stage.
This clearly reveals an improvement from the previous quarters and remains on track to produce the best growth in six quarters. Looking at the third quarter as a whole and putting together the actual results of 291 index members with estimates for the upcoming 209 companies, total S&P 500 earnings are anticipated to be up 2% driven by 1.4% higher revenues.
That said, we quickly jump on to the Consumer Discretionary sector, which has seen 40% of its S&P 500 members report their third-quarter results with a 64.3% earnings beat and 50% revenue beat ratios. The third-quarter forecasts show that earnings for the Consumer Discretionary sector are expected to inch up 0.2%, whereas revenues are anticipated to surge 11.7%.
Of the earnings yet to be reported, we will here focus on three Consumer Discretionary stocks which are expected to report third-quarter 2016 results on Nov 2.
To start with we expect Take-Two Interactive Software Inc. (TTWO - Free Report) to beat expectations when it reports earnings. This view is supported by the company’s Earnings ESP of 14.29% as its Most Accurate estimate of 16 cents stands above the Zacks Consensus Estimate of 14 cents. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Also, this developer, publisher and marketer of interactive entertainment solutions for consumers’ worldwide carries a Zacks Rank #3 (Hold). This satisfies the requisites of our proven model, indicating that the stock is likely to beat estimates. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 214%.
TAKE-TWO INTER Price and EPS Surprise
TAKE-TWO INTER Price and EPS Surprise | TAKE-TWO INTER Quote
Next, the earnings picture for Grand Canyon Education Inc. (LOPE - Free Report) – a provider of post-secondary education services in the U.S. and Canada –looks good. The company has outpaced the Zacks Consensus Estimate by an average of 6.3% over the past four quarters, with a beat in each quarter. We expect the company to beat expectations when it reports earnings. It currently holds a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This view is supported by the company’s Earnings ESP of 1.70% as its Most Accurate estimate of 60 cents stands above the Zacks Consensus Estimate of 59 cents.
GRAND CANYON ED Price and EPS Surprise
GRAND CANYON ED Price and EPS Surprise | GRAND CANYON ED Quote
Also in the queue is SP Plus Corporation (SP - Free Report) , a provider of management services including parking management, ground transportation and other ancillary services in the U.S. We are unsure whether this Chicago, IL-based company will be able to post a positive earnings surprise in the quarter to be reported. The company’s past performance reveals that it has underperformed the Zacks Consensus Estimate by an average of 13.4% over the trailing four quarters. The company’s Zacks Rank #3 when combined with an Earnings ESP of 0.00%, indicates that the chances of a beat are minimal. Its Most Accurate estimate and the Zacks Consensus Estimate – both stand at 36 cents. A stock generally needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for a beat. Thus, we would wait and see what is in store for this company in the upcoming results.
SP PLUS CORP Price and EPS Surprise
SP PLUS CORP Price and EPS Surprise | SP PLUS CORP Quote
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While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>