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Finance Stocks' Q3 Earnings Slated on Nov 7: OMF, LC & More

LC PRAA TSLX OMF

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The third-quarter earnings cycle for the Finance sector, which is one of the largest constituent in the S&P 500 Index, is in its final phase. Results released by most of the participants so far depict a significant improvement in the sector’s performance despite a challenging operating environment.

Per our latest Earnings Outlook report, total earnings for the reported companies increased 11.3% year over year on a revenue improvement of 6%. Notably, 72.5% companies have surpassed bottom-line expectations and 73.8% beat on the top line.

In fact, overall earnings for the S&P 500 stocks in the Finance sector are projected to be up 12% year over year in the third quarter. This compares favorably with a 5.2% decline in the last quarter.

Recovery in oil prices and improving domestic economic factors mainly contributed to the sector’s recovery. Additionally, an improving labor market and a recovering housing market acted in favor.

On the other hand, global concerns and a persistent low interest rate environment remained the undermining factors.

Let’s take a look at the four finance stocks that are scheduled to report their third-quarter 2016 earnings on Nov 7.

OneMain Holdings, Inc. (OMF - Free Report) : The Zacks Consensus Estimate for the stock has remained stable ahead of its earnings release. The estimate of $1.07 cents per share reflects significant year-over-year growth.

Moreover, based on our proven model, we expect OneMain Holdings to beat the Zacks Consensus Estimate in the upcoming release. This is because the stock has the combination of a Zacks Rank #3 (Hold) and Earnings ESP of +2.8%.

You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Our quantitative model highlights those stocks that have the combination of a positive Earnings ESP and a favorable Zacks Rank – Zacks Rank #1, #2 (Buy) or #3 – for an earnings surprise call.

Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

Further, the company boasts a decent earnings surprise history. The stock has outperformed the Zacks Consensus Estimate in three of the trailing four quarters, recording an average positive earnings surprise of 24.1%.

ONEMAIN HOLDNGS Price and EPS Surprise

 

ONEMAIN HOLDNGS Price and EPS Surprise | ONEMAIN HOLDNGS Quote

LendingClub Corporation (LC - Free Report) : The Zacks Consensus Estimate for the stock has remained constant ahead of its earnings release. The estimate of a loss of 10 cents per share reflects a significant year-over-year decline.

Nonetheless, LendingClub is expected to beat the Zacks Consensus Estimate in the to-be-reported quarter, as the stock carries a Zacks Rank #3 and an Earnings ESP of +10%.

However, the company does not have a decent earnings surprise history. The stock has surpassed the Zacks Consensus Estimate in only one of the trailing four quarters with an average negative earnings surprise of 20%.

LENDINGCLUB CP Price and EPS Surprise

 

LENDINGCLUB CP Price and EPS Surprise | LENDINGCLUB CP Quote

TPG Specialty Lending, Inc. (TSLX - Free Report) : The Zacks Consensus Estimate for the stock has remained stable ahead of its earnings release. The estimate of 43 cents per share reflects a year-over-year decline of 11%.

In addition, the stock is less likely to beat the Zacks Consensus Estimate in the forthcoming release, as it carries a Zacks Rank #3 and an Earnings ESP of 0.00%.

However, the company has a decent earnings surprise history. The stock has outperformed the Zacks Consensus Estimate in three of the trailing four quarters, recording an average positive earnings surprise of 4.2%.

TPG SPECIALTY Price and EPS Surprise

 

TPG SPECIALTY Price and EPS Surprise | TPG SPECIALTY Quote

PRA Group, Inc. (PRAA - Free Report) : The Zacks Consensus Estimate for the stock has remained constant ahead of its earnings release. The estimate of 77 cents per share highlights a year-over-year decline of 22.7%.

Further, the stock is less likely to beat the Zacks Consensus Estimate in the forthcoming release, as it carries a Zacks Rank #3 and an Earnings ESP of 0.00%.

Also, the company does not boast a decent earnings surprise history. The stock lagged the Zacks Consensus Estimate in three of the trailing four quarters, recording an average negative earnings surprise of 6.7%.

PRA GROUP INC Price and EPS Surprise

 

PRA GROUP INC Price and EPS Surprise | PRA GROUP INC Quote

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