Finance Stocks Earnings Slated for May 10: FNGN, MRKT, FSC
The first-quarter 2016 earnings season is almost at the tail end with results from 87% of S&P 500 members already out. Per our latest Earnings Preview article , total earnings for 436 S&P 500 index members are down 7.5% from the same period last year on 1.5% lower revenues, with 71.3% beating EPS estimates and 56.4% beating revenue estimates.
The results mirror the economic volatility witnessed during the first quarter. Though the current picture looks better, economic headwinds such as a slowdown of the Chinese economy, the continued volatility in commodity prices and global growth uncertainties still persist.
Focusing on the Finance sector, which is one of the biggest sectors in the S&P 500 index, about 98% of the S&P 500 members have already reported their results. Total earnings for these companies decreased 7.3% on 1.9% higher revenues.
Notably, the beat ratio seems strong with 60.5% surpassing bottom-line expectations and 53.5% beating on the top line. Interestingly, given the downward trend in earnings estimate revisions prior to the earnings release, companies pulling off a positive earnings are nothing unusual.
With the remaining index members set to release results, let's find out what's in store for these three finance sector companies that will report on May 10.
Financial Engines, Inc.FNGN is an independent investment advisor that provides personalized retirement plans for saving, investing, and retirement income. The company is slated to report after the market closes.
The Zacks Consensus Estimate for the company has witnessed upward revision over the last 30 days. Additionally, the estimate of 16 cents per share for the upcoming release indicates year-over-year growth of about 5%.
However, with an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy), it is difficult to predict an earnings beat for Financial Engines in the upcoming release. Though a Zacks Rank #2 increases the predictive power of the earnings beat, we also need a positive Earnings ESP to be sure of the same.
Notably, the earnings surprise history for Financial Engines is depicted in the chart below:
Markit Ltd.MRKT focuses on providing financial information services. The company is scheduled to announce results before the market opens. The Zacks Consensus Estimate of 31 cents for the company for the upcoming release reflects a year-over-year decline of about 3.12%.
Further, the company has a Zacks Rank #3 (Hold) with an Earnings ESP of 0.00%, making it difficult to conclusively predict an earnings beat this quarter.
Also, Markit doesn't have a decent surprise history as indicated in the chart below:
Fifth Street Finance Corp.FSC is a specialty finance company that lends to and invests in small and mid-sized companies in connection with an investment by private equity sponsors. The company will announce results before the market opens. The Zacks Consensus Estimate of 18 cents for the upcoming release indicates a year-over-year decline of about 4.21%.
Further, the company has a Zacks Rank #3 with an Earnings ESP of 0.00%, making it difficult to conclusively predict an earnings beat this quarter.
Also, Fifth Street doesn't have a decent surprise history as shown in the chart below: