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Business Services' Nov 2 Q3 Earnings Roster: GPN, VRSK & More

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·5 min read
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  • GPN
  • VRSK
  • IT
  • WU

Through the third quarter of 2021, the business services sector has been recovering gradually, backed by gradual resumption of business activities and strength across both manufacturing and non-manufacturing activities. Notably, the increased rate of vaccination and relaxation of restrictions has lifted sentiments.

The quarter witnessed growth in major manufacturing industries like computer & electronic products; machinery; electrical equipment; appliances & components; transportation equipment; food, beverage & tobacco products; printing & related support activities; paper products; plastics & rubber products, and petroleum & coal products.

Among services industries, notable growth came in from transportation & warehousing; management of companies & support services; retail trade; wholesale trade; accommodation & food services; mining; utilities; construction; health care & social assistance; finance & insurance; information; educational services; and professional, scientific & technical services.

Earnings Picture So Far, and Expectations

The third-quarter earnings for the S&P 500 members of the Business Services sector have been outstanding so far. The sector had a commendable start, with major players like Equifax EFX, IQVIA Holdings IQV, Robert Half RHI, S&P Global SPGI, Waste Management WM and Fiserv FISV beating on both earnings and revenues.

The latest Earnings Outlook suggests that earnings for those S&P 500 members of the business services sector that have reported results grew 32.4% year over year on 20% revenue growth, with 86.7% of the same beating the Zacks Consensus Estimate for EPS and 93.3% of the same topping sales projections.

Total quarterly earnings for the S&P 500 members of the sector are currently anticipated to display 24.4% year-on-year growth, and revenues will likely reflect a 14.3% rise.

GPN, VRSK, IT, WU in Spotlight

Here we discuss four business services companies scheduled to report third-quarter 2021 results on Nov 2.

Our quantitative model suggests that the combination of the following two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — increases the odds of a positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Global Payments Inc. GPN: This Georgia-based provider of payment technology and software solutions for card, electronic, check, and digital-based payments is scheduled to report third-quarter 2021 results on Nov 2, before market open.

The Zacks Consensus Estimate for revenues is pegged at $1.99 billion, indicating a 13.9% increase from the year-ago quarter’s reported figure. The consensus mark for earnings stands at $2.14 per share, indicating a rise of 25.2% from the prior-year quarter's reported number.

Global Payments has an Earnings ESP of -0.19% and a Zacks Rank #3.

Global Payments Inc. Price and EPS Surprise

Global Payments Inc. Price and EPS Surprise
Global Payments Inc. Price and EPS Surprise

Global Payments Inc. price-eps-surprise | Global Payments Inc. Quote

Verisk Analytics, Inc. VRSK: This New Jersey-based data analytics solutions’ provider is scheduled to report third-quarter 2021 results on Nov 2, after market close.

The Zacks Consensus Estimate for Verisk’s third-quarter 2021 revenues stands at $754.44 million, indicating growth of 7.4% from the year-ago reported figure.

Verisk’s bottom line is likely to have benefited from organic growth in the business, contributions from acquisitions and lower average share count. The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at $1.37 per share, indicating growth of 3.8% from the year-ago quarter’s reported figure.

Verisk has an Earnings ESP of 0.00% and a Zacks Rank #3. (Read more: Verisk to Report Q3 Earnings: What's in the Offing?)

Verisk Analytics, Inc. Price and EPS Surprise

Verisk Analytics, Inc. Price and EPS Surprise
Verisk Analytics, Inc. Price and EPS Surprise

Verisk Analytics, Inc. price-eps-surprise | Verisk Analytics, Inc. Quote

Gartner, Inc. IT: This Connecticut-based research and advisory company is scheduled to report third-quarter 2021 results on Nov 2, before market open.

The Zacks Consensus Estimate for Gartner’s third-quarter 2021 revenues is pegged at $1.13 billion, indicating growth of 13.8% from the year-ago quarter's reported figure. Strength across Research, Consulting and Conferences segments is likely to have aided the top line.

Solid operational performance is likely to have aided the bottom line. The consensus estimate for earnings stands at $1.65 per share, implying year-over-year growth of 81.3%.

Gartner has an Earnings ESP of 0.00% and a Zacks Rank #3. (Read more: Gartner to Report Q3 Earnings: What's in the Cards?)

Gartner, Inc. Price and EPS Surprise

Gartner, Inc. Price and EPS Surprise
Gartner, Inc. Price and EPS Surprise

Gartner, Inc. price-eps-surprise | Gartner, Inc. Quote

The Western Union Company WU: This Colorado-based money movement and payment services provider is scheduled to report third-quarter 2021 results after the bell.

The Zacks Consensus Estimate for revenues is pegged at $1.31 billion, indicating a 4.1% increase from the year-ago quarter’s reported figure. The consensus mark for earnings stands at 58 cents per share, indicating a rise of 1.8% from the prior-year quarter's reported number.

Western Union has an Earnings ESP of 0.00% and carries a Zacks Rank #3.

The Western Union Company Price and EPS Surprise

The Western Union Company Price and EPS Surprise
The Western Union Company Price and EPS Surprise

The Western Union Company price-eps-surprise | The Western Union Company Quote


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Fiserv, Inc. (FISV) : Free Stock Analysis Report

The Western Union Company (WU) : Free Stock Analysis Report

Equifax, Inc. (EFX) : Free Stock Analysis Report

Waste Management, Inc. (WM) : Free Stock Analysis Report

Global Payments Inc. (GPN) : Free Stock Analysis Report

Robert Half International Inc. (RHI) : Free Stock Analysis Report

Gartner, Inc. (IT) : Free Stock Analysis Report

Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report

S&P Global Inc. (SPGI) : Free Stock Analysis Report

IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report

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