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Finance Stocks Queued up for Earnings: EVER, LM & More

Zacks Equity Research

The results released by finance companies so far this quarter depicts improvement in the industry backdrop during the quarter. Favorable domestic economic factors and recovering oil prices primarily helped in removing the pressure. However, the interest rate environment still remains a pain for the sector participants.

An improving labor market with lower unemployment rate and a recovering housing market should support growth in the industry.

Notably, per our Earnings Outlook report, overall earnings for the Finance sector in Jul-Sep 2016 quarter are expected to be up 14.3% year over year.

Let’s take a look at the four finance stocks that are scheduled to report their earnings tomorrow.

EverBank Financial Corp. EVER is scheduled to report third-quarter 2016 results before the opening bell. Its Zacks Consensus Estimate of 36 cents remained stable over the past 30 days. Moreover, the figure reflects a year-over-year increase of 57.6%.

However, 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).

Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

Notably, the company delivered an average negative surprise of 8.6% in the trailing four quarters.

EVERBANK FIN CP Price and EPS Surprise
 

EVERBANK FIN CP Price and EPS Surprise | EVERBANK FIN CP Quote

Legg Mason, Inc. LM is also slated to report its fiscal second-quarter 2017 (ended Sep 30, 2016) results before the opening bell. We cannot conclusively predict of an earnings beat this quarter as the company carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.

It is expected that performance fees will be stable for the quarter on a sequential basis. However, compensation and benefits ratio is likely to decline. Also, the company is expected to record one-time charges in the to-be-reported quarter. (Read more: Legg Mason to Report Q2 Earnings: What's in Store?)

Notably, the company witnessed an average negative surprise of 59.4% in the trailing four quarters as depicted in the chart below:

LEGG MASON INC Price and EPS Surprise
 

LEGG MASON INC Price and EPS Surprise | LEGG MASON INC Quote

The Zacks Consensus Estimate of Hilltop Holdings Inc. HTH, which is set to report results before the market opens, has increased 3.9% over the past 30 days. Its estimate of 53 cents represents a year-over-year growth of 12.2%.

The company is less likely to post an earnings beat this quarter because it has an Earnings ESP of -5.66% and carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Moreover, the company lagged the Zacks Consensus Estimate in three of the trailing four quarters as depicted in the chart below:

HILLTOP HLDGS Price and EPS Surprise
 

HILLTOP HLDGS Price and EPS Surprise | HILLTOP HLDGS Quote

WisdomTree Investments, Inc. WETF is also slated to report results before the market opens. It cannot be predicted whether the company will be able to beat the Zacks Consensus Estimate, as it has a Zacks Rank #3 and an Earnings ESP of 0.00%.

The company recorded elevated outflows during the quarter. Also, it remains focused on executing its strategic growth initiatives which are expected to increase marketing and sales expenses. (Read more: Will WisdomTree Plunge Further Post Q3 Earnings?)

Notably, the company delivered an average negative surprise of 15.6% in the trailing four quarters as depicted below:

WISDOMTREE INV Price and EPS Surprise
 

WISDOMTREE INV Price and EPS Surprise | WISDOMTREE INV Quote

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LEGG MASON INC (LM): Free Stock Analysis Report
 
HILLTOP HLDGS (HTH): Free Stock Analysis Report
 
EVERBANK FIN CP (EVER): Free Stock Analysis Report
 
WISDOMTREE INV (WETF): Free Stock Analysis Report
 
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