The earnings season is in its last leg, with over 84% of the total S&P 500 index members having released their quarterly results through Nov 4. Results have improved considerably from the previous quarters and are expected to end up in the positive territory after five consecutive quarters of earnings decline for the S&P 500 index.
Per the latest Earnings Preview report, combining the actual results from the 423 S&P 500 members with estimates from the soon-to-be-report 77 index members, overall Q3 earnings are expected to be up 3% on a 1.5% growth in revenues. The relative improvement in estimate revisions for the quarter is largely due to an improvement in the economy and rising oil prices.
Four of the 16 Zacks sectors are expected to witness an earnings decline in the quarter, with Oil/Energy, Transportation and Autos being the biggest drag. Over 645 companies are scheduled to report this week, including 31 S&P 500 members, bringing the tally for the results of the index’s total membership to 90.8%.
The performance of the Business Services sector is looking reasonably healthy this quarter. For the sector, earnings are expected to grow 16.7%, while sales are touted to rise 8.7% over the last year. The projected improvement is majorly driven by the growing momentum in the economy as a whole and the job market during the quarter.
Let’s see how things are shaping up for the four Business Services companies scheduled to report their third-quarter 2016 results tomorrow.
Ritchie Bros. Auctioneers Incorporated (RBA - Free Report) is slated to report its results after market close. The company conducts unreserved public auctions every year across North and Central America, Europe, Asia, Australia, Africa and the Middle East. It is renowned for its innovative auction methods, attention to detail and total commitment to the unreserved auction. Over the trailing four quarters the company missed estimates twice, with an average negative surprise of 6.80%.
However, it is likely to record an earnings beat this quarter as the company has an Earnings ESP of +5.00% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Cotiviti Holdings, Inc. (COTV - Free Report) is set to report its results after market close. The company provides payment processing services, majorly focusing on the healthcare sector.
For the quarter to be reported, we are uncertain of an earnings beat as the company has an Earnings ESP of 0.00% and a Zacks Rank #2. Over the trailing four quarters the company beat estimates once by a large margin, with an average positive surprise of 37.50%.
Clear Channel Outdoor Holdings Inc. (CCO - Free Report) is scheduled to report its results after market close. The company is a leader in outdoor advertising displays worldwide. In the U.S., the company operates advertising displays and has a presence of the top DMA (designated market area) regions.
For the quarter to be reported, we are uncertain of an earnings beat as the company has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell). Over the trailing four quarters, the company surpassed estimates by a large margin, with an average positive surprise of 133.33%.
WageWorks, Inc. (WAGE - Free Report) is scheduled to report its results after market close. Headquartered in San Mateo, CA, WageWorks delivers its CDB (Consumer-Directed Benefits) programs through a benefits-as-a-service delivery model. For the quarter to be reported, this Zacks Rank #3 stock has an Earnings ESP of 0.00%, thus making an earnings prediction uncertain. Over the trailing four quarters, the company has beaten estimates thrice, with an average positive surprise of 16.22%.
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