Business Services' Q2 Earnings Lineup on Aug 1: IT, IQV & NSP
Based on a Euromonitor International report, the business service sector is experiencing rapid global growth, with the Asia Pacific region projected to lead with the highest growth rate in the market. The sector includes consulting, outsourcing, staffing and waste management companies.
Some major players of the Zacks Business Services sector, like Gartner, Inc. IT, IQVIA Holdings Inc. IQV and Insperity, Inc. NSP, are set to reveal their second-quarter numbers tomorrow.
What Influenced Business Services’ Q1?
Factors like service essentiality, successful work-from-home models and digital transformation have been boding well for the sector for the previous few quarters. Automation and AI have been playing major roles in shaping the sector’s performance.
Economic activities in the services sector continued, with the Services PMI measured by the Institute for Supply Managementreaching 53.9%. The services sector showed growth in 36 of the last 37 months, with only one contraction occurring the previous December.
Several services industries maintained a healthy state, including management of companies and support services, retail trade, wholesale trade, mining, utilities, construction, health care and social assistance, finance and insurance, information, educational services, and professional, scientific and technical services.
Business Service in Q2
The business services sector has a decent start to Q2 earnings, with TransUnion TRU and Automatic Data ADP beating the Zacks Consensus Estimate for earnings and revenues.
Per the latest Earnings Outlook, 39.3% of the S&P 500 business services stock have reported their second-quarter results to date. Notably, 63.6% of the companies have beaten earnings per share (EPS) estimates, whereas 45.5% of the S&P 500 members have beaten revenue estimates. On the growth side, 8.4% of the companies have reported year-over-year earnings growth, whereas 3.9% have reported revenue growth. By far, the S&P 500 members of the business service sector have presented a 36.4% blended earnings and revenue beat.
The business services sector is expected to witness year-over-year earnings growth of 4.1%, suggesting a rise from the 2.1% reported in the first quarter. Then again, revenues are expected to witness 4.6% year-over-year growth, indicating a decline from the 6.5% reported a quarter ago.
Eyes on Gartner, IQVIA and Insperity
Here are three business service stocks that are scheduled to report their second-quarter results on Aug 1.
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.
Gartner is a renowned research and advisory company that delivers valuable insights, analysis, and consulting services to guide businesses in making informed decisions related to technology, IT and other strategic areas. The company currently has an Earnings ESP of +5.86 and a Zacks Rank #4 (Sell).
Presently, the Zacks Consensus Estimate for the company's revenues is pegged at $1.49 billion, indicating an 8.1% increase from the previous year’s actual. The company's revenue growth is expected to have been influenced by its strategy of diversifying its business according to cycle length.
The consensus estimate for the company's EPS is pegged at $2.48, implying a 13% decline from the previous year’s actual. The company's bottom line is expected to have been affected by rising costs. (Read more: Gartner (IT) to Report Q2 Earnings: Here's What to Expect)
Gartner, Inc. Price and EPS Surprise
Gartner, Inc. price-eps-surprise | Gartner, Inc. Quote
IQVIA is a global provider of advanced analytics, technology solutions, and contract research services in the healthcare industry, helping clients drive better outcomes and gain actionable insights. The company currently has a Zacks Rank of #4 and an Earnings ESP of -0.85%.
The Zacks Consensus Estimate for the company's revenues is pegged at $3.7 billion, indicating a 4.6% increase from the previous year’s actual, which can be attributed to the company's diversified business approach based on cycle length likely contributing to revenue growth.
The consensus estimate for the company's EPS is pegged at $2.37, indicating a 2.9% decrease from that reported in the previous year possibly due to increased costs impacting the company's bottom line. (Read More: IQVIA (IQV) to Report Q2 Earnings: What's in the Offing?)
IQVIA Holdings Inc. Price and EPS Surprise
IQVIA Holdings Inc. price-eps-surprise | IQVIA Holdings Inc. Quote
Insperity is a professional employer organization that offers comprehensive human resources and business solutions to help businesses streamline operations and support their employees. The company currently sports Zacks Rank #1 (Strong Buy) but has an Earnings ESP of -0.81%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NSP’s quarterly revenues is pegged at $1.54 billion, suggesting a 7.9% rise from the year-ago reported figure. Notably, the consensus mark for earnings is pinned at $1.24, indicating 6.9% growth from the year-ago reported figure. The rise can be attributed to likely growth in worksite employees and a strong pricing policy followed by the company. Control over operating costs is likely to have driven the company’s bottom line.
Insperity, Inc. Price and EPS Surprise
Insperity, Inc. price-eps-surprise | Insperity, Inc. Quote
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Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
Gartner, Inc. (IT) : Free Stock Analysis Report
Insperity, Inc. (NSP) : Free Stock Analysis Report
TransUnion (TRU) : Free Stock Analysis Report
IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report
