We are progressing toward the end of the earnings season, with earnings and revenue growth looking pretty decent compared to the last few reported quarters. The overall results for fourth-quarter 2016 are likely to be the best in about two years.
Per the latest Earnings Trends , 319 S&P 500 companies have reported earnings till Feb 8, accounting for 76.3% of the index's total market capitalization, with 69.6% topping EPS (earnings per share) estimates and 54.5% coming in ahead of top-line expectations. If the positive trend continues we will move into the positive territory.
Earnings of all the S&P 500 companies combined are expected to rise 7.3% from the year-ago period on revenue growth of 3.9%.
For the quarter as a whole, about four of the 16 Zacks sectors are expected to witness an earnings decline, with Autos, Conglomerates and Transportation being the biggest drag.
The Business Services sector is looking impressive. For the sector, earnings are expected to grow 11.4% year over year, while sales are touted to rise 7.5% driven by higher capital investment in the infrastructure market and improved economic and labour market conditions.
Let's have a sneak peek at three major Business Service Stocks set to release their fourth-quarter results tomorrow.
The Interpublic Group of Companies, Inc.IPG is scheduled to report results before the opening bell. Notably, over the trailing four quarters, the company delivered an average positive surprise of approximately 29.29%, beating estimates thrice.
During the third quarter, the company acquired a U.K.-based company, Flipside. The acquisition is likely to impact the company's top-line in the to-be-reported quarter.
For 2016, the company updated its organic revenue growth expectations to 4-5% from 3-4% expected earlier, with operating margin improvement of 50 basis points or more over the previous year.
A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for a likely earnings beat. You can see the complete list of today's Zacks #1 Rank stocks here . For the impending quarter, Interpublic has an Earnings ESP of 0.00% and Zacks Rank #4 (Sell), making a surprise prediction difficult (read more: What's in Store for Interpublic this Earnings Season? )
Interpublic Group of Companies, Inc. (The) Price and EPS Surprise
Interpublic Group of Companies, Inc. (The) Price and EPS Surprise | Interpublic Group of Companies, Inc. (The) Quote
Genpact LimitedG is slated to report results before the opening bell. Headquartered in New York City, the company is a global leader in providing business process management and services and IT corporation services. Over the trailing four quarters the company beat estimates on every occasion, with an average positive surprise of 7.36%. For the quarter to be reported, the company has an Earnings ESP of 0.00% and a Zacks Rank #3, which makes earnings predication uncertain.
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Genpact Limited Price and EPS Surprise
Genpact Limited Price and EPS Surprise | Genpact Limited Quote
Knoll, Inc.KNL is set to released earnings after market close. The company is a leading designer and manufacturer of branded office furniture products and textiles, serves clients worldwide. Over the trailing four quarters, the company beat estimates on every occasion, with an average positive surprise of 11.18%. For the quarter to be reported, the company has an Earnings ESP of 0.00% and a Zacks Rank #3, which makes earnings predication uncertain.
Knoll, Inc. Price and EPS Surprise
Knoll, Inc. Price and EPS Surprise | Knoll, Inc. Quote
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Interpublic Group of Companies, Inc. (The) (IPG): Free Stock Analysis Report
Genpact Limited (G): Free Stock Analysis Report
Knoll, Inc. (KNL): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
