U.S. Markets open in 2 hrs 25 mins
  • S&P Futures

    4,602.50
    -52.25 (-1.12%)
     
  • Dow Futures

    35,537.00
    -259.00 (-0.72%)
     
  • Nasdaq Futures

    15,315.25
    -280.50 (-1.80%)
     
  • Russell 2000 Futures

    2,133.40
    -24.30 (-1.13%)
     
  • Crude Oil

    85.01
    +1.19 (+1.42%)
     
  • Gold

    1,813.30
    -3.20 (-0.18%)
     
  • Silver

    22.93
    +0.02 (+0.07%)
     
  • EUR/USD

    1.1390
    -0.0021 (-0.1822%)
     
  • 10-Yr Bond

    1.7720
    0.0000 (0.00%)
     
  • Vix

    21.62
    +1.31 (+6.45%)
     
  • GBP/USD

    1.3599
    -0.0048 (-0.3509%)
     
  • USD/JPY

    114.6700
    +0.0900 (+0.0785%)
     
  • BTC-USD

    41,892.14
    -825.73 (-1.93%)
     
  • CMC Crypto 200

    1,002.83
    -22.90 (-2.23%)
     
  • FTSE 100

    7,566.44
    -44.79 (-0.59%)
     
  • Nikkei 225

    28,257.25
    -76.27 (-0.27%)
     

Service Stocks Oct 26 Earnings Roster: V, SPGI and More

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·5 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

The widely diversified business services sector continued reviving from the pandemic blues through the third quarter of 2021, benefiting from the gradually improving economy and uptick in both manufacturing and non-manufacturing activities, driven by the relaxation of restrictions and increased rate of vaccination.

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, Robert Half RHI, Omnicom OMC, Interpublic IPG 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 27.6% year over year on 19.1% revenue growth, with 100% of the same beating EPS estimates and 75% topping sales projections.

Total quarterly earnings for the S&P 500 members of the sector are currently anticipated to display 18.3% year-on-year growth, and revenues will likely reflect a 13.6% rise. This compares favorably with the 5.5% and 4.2% decline in earnings and revenues in the third quarter of 2020, respectively.

V, SPGI, WM, TRU in Spotlight

Here we discuss four business services companies scheduled to report quarterly results on Oct 26.

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.

Visa V: This California-based payment technology company is scheduled to report fourth-quarter fiscal 2021 results after the bell.

The Zacks Consensus Estimate for revenues is pegged at $6.48 billion, indicating a 27.1% increase from the year-ago quarter’s reported figure. The company is likely to have retained its revenue momentum in the fourth quarter on the back of its strong market position and increased adoption of digital payments amid the pandemic. Revenues are likely to have gained from higher payment volumes, cross-border volumes and processed transactions.

The consensus mark for earnings stands at $1.53 per share, indicating a rise of 36.6% from the prior-year quarter's reported number. The bottom line is expected to have gained from the company’s operating efficiency.

Visa has an Earnings ESP of 0.24% and carries a Zacks Rank #3.(Read more: Will Visa (V) Continue With Its Beat Streak in Q4 Earnings?)

Visa Inc. Price and EPS Surprise

Visa Inc. Price and EPS Surprise
Visa Inc. Price and EPS Surprise

Visa Inc. price-eps-surprise | Visa Inc. Quote

S&P Global Inc. SPGI: This New York-based provider of ratings, benchmarks, analytics and data is scheduled to report third-quarter 2021 results before the bell.

The Zacks Consensus Estimate for S&P Global’s revenues is pinned at $2 billion, indicating growth of 8.2% from the year-ago reported figure. Strength across Ratings, Platts and Indices segments is likely to have aided the top line.

The consensus mark for earnings is pegged at $3.18 per share, calling for an increase of 11.6% from the year-earlier quarter’s reported figure. Revenue growth and operating performance are expected to have aided the bottom line.

S&P Global has an Earnings ESP of 0.63% and carries a Zacks Rank #3. (Read more: Is a Beat in the Cards for S&P Global (SPGI) in Q3 Earnings?)

S&P Global Inc. Price, Consensus and EPS Surprise

S&P Global Inc. Price, Consensus and EPS Surprise
S&P Global Inc. Price, Consensus and EPS Surprise

S&P Global Inc. price-consensus-eps-surprise-chart | S&P Global Inc. Quote

Waste Management, Inc. WM: This Texas-based waste management environmental services provider will announce third-quarter 2021 results before the bell.

The Zacks Consensus Estimate for revenues is pegged at $4.55 billion, suggesting growth of 17.7% from the year-earlier quarter's reported figure likely to have been driven by acquisition revenues and growth from yield. The consensus estimate for earnings stands at $1.33 per share, indicating an operational efficiency-driven year-over-year growth of 22%.

Waste Management has an Earnings ESP of -1.93% and carries a Zacks Rank of 2 (Buy), currently. (Read more: What's in Store for Waste Management (WM) in Q3 Earnings?)

Waste Management, Inc. Price and EPS Surprise

Waste Management, Inc. Price and EPS Surprise
Waste Management, Inc. Price and EPS Surprise

Waste Management, Inc. price-eps-surprise | Waste Management, Inc. Quote

TransUnion TRU: This Chicago-based risk and information solutions provider’s Zacks Consensus Estimate for earnings is pegged at 93 cents per share, calling for year-over-year growth of 14.8%. The consensus mark for revenues is pinned at $774.3 million, suggesting a year-over-year jump of 11.3%.

TransUnion has an Earnings ESP of -0.08% and holds a Zacks Rank #3, at present. The company will announce third-quarter 2021 results before the bell.

TransUnion Price and EPS Surprise

TransUnion Price and EPS Surprise
TransUnion Price and EPS Surprise

TransUnion price-eps-surprise | TransUnion 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

Visa Inc. (V) : Free Stock Analysis Report

Omnicom Group Inc. (OMC) : Free Stock Analysis Report

Interpublic Group of Companies, Inc. The (IPG) : Free Stock Analysis Report

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

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

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

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

TransUnion (TRU) : Free Stock Analysis Report

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

To read this article on Zacks.com click here.

Zacks Investment Research