Most of the finance companies have come up with better-than-expected results for the quarter-ended Sep 30, despite a challenging operating environment. This depicts an encouraging picture.
Improvements in domestic economic factors and recovery of oil prices have primarily supported the sector’s recovery. Going forward, an improving labor market and a recovering housing market should keep the growth trend alive.
However, the low interest rate environment remained a headwind for the sector participants during the quarter.
With Donald Trump becoming the President, bank stocks are expected to benefit further from lesser regulatory pressure, higher probability of a rate hike and volatility driven growth in trading revenues.
Per our latest Earnings Trends report, all S&P 500 stocks in the finance sector have reported results and earnings have grown 12.2% year over year.
Let’s take a look at the three finance stocks that are scheduled to report their third-quarter 2016 earnings on Nov 14.
Patriot National, Inc. (PN - Free Report) is scheduled to report results before the opening bell. Its Zacks Consensus Estimate of 23 cents has remained stable over the past 30 days. However, it reflects growth of 27.8% year over year.
We cannot conclusively predict of an earnings beat this quarter as it doesn’t have the right combination of two key ingredients. It has an Earnings ESP of 0.00% and carries a Zacks Rank #3 (Hold).
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Notably, the company delivered an average negative surprise of 26.2% in the trailing four quarters as depicted in the chart below:
Medley Management Inc. (MDLY - Free Report) is slated to report its results after the market closes. Its Zacks Consensus Estimate of 16 cents reflects a substantial year-over-year growth. However, the figure remained stable over the past 30 days.
It carries a Zacks Rank #3. However, we cannot predict of an earnings beat this quarter because the company has an Earnings ESP of 0.00%.
Notably, it witnessed an average negative surprise of 36% over the trailing four quarters.
The Zacks Consensus Estimate for Marathon Patent Group, Inc. (MARA - Free Report) , which is also set to report results after the market closes, has remained stable over the past 30 days. However, its estimate is a loss of 25 cents which reflects a substantial year-over-year decline.
Again, it cannot be predicted whether the company will beat the Zacks Consensus Estimate this quarter because it has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, it delivered an average positive surprise of 47.3% in the trailing four quarters as depicted below:
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