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Business Services Q2 Earnings on Jul 31: VRSK, APTV & More
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We are in the thick of second-quarter earnings season, which is showing overall growth. Per the latest Earnings Outlook, 265 S&P 500 companies (who collectively account for 66.2% of the index’s total market capitalization) have already reported results.
Total earnings of these companies increased 23.6% from the same period last year on 10.1% higher revenues, with 80.8% beating EPS estimates and 72.1% beating revenue estimates. Total second-quarter 2018 earnings are expected to be up 23.6% on 8.8% higher revenues.
Business Services to Record Solid Growth
Per the above report, stocks in the Business Services sector are expected to record top- and bottom-line growth of 6.4% and 22.1%, respectively. Notably, the sector is one of the 12 Zacks sectors (out of total 16 Zacks sectors) expected to register double or triple-digit earnings growth.
The outlook of Business Services is highly dependent on the health of the broader economy, which is currently quite favorable. The U.S. economy is benefiting from Trump administration’s business-friendly approach, including tax cuts, higher spending and repeal of regulations. This has improved the employment scenario and aided manufacturing and non-manufacturing activities.
The business services sectorhas performed well compared with the benchmark index year to date. The sector has gained 11.4%, which compares favorably with the Zacks S&P 500 Composite’s rally of 5.8% in the said time frame.
Stocks to Watch Out for Earnings on Jul 31
Given this bullish backdrop, investors interested in the Business Services stocks can watch out for three companies that are scheduled to report their second-quarter 2018 numbers on Jul 31.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $586 million, indicating a 12% year-over-year increase. The top line is expected to have benefited from solid revenue growth across all the segments — Insurance, Energy and Specialized Markets and Financial Services. The segments are too expected to improve organically as well as on an organic constant-currency basis.
The consensus estimate for earnings is pegged $1.01, mirroring year-over-year growth of 23.2%. Strong organic growth, 2017 tax reform policy (Tax Cuts and Jobs Act) and contributions from acquisitions are likely to have boosted the company’s bottom line. (Read more: Verisk Analytics Q2 Earnings: What's in the Cards?)
Verisk boasts a robust earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average beat of 4.8%.
Aptiv PLC (APTV - Free Report) is a global technology and mobility company, headquartered in Gillingham, Kent, UK. The company carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for second-quarter revenues is pegged at $3.6 billion, indicating a 2.2% sequential decrease. The consensus mark for earnings stands at $1.37, reflecting a sequential increase of 6.2%. The expected improvement in earnings is due to continuous margin expansion and $149 million share repurchase in the first quarter.
Aptiv’s earnings surprise history is also impressive. The company’s bottom line surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 3.5%.
Maxar Technologies Ltd. is a space and geospatial intelligence company, based in Westminster, CO. The company carries a Zacks Rank of 3.
The Zacks Consensus Estimate for second-quarter revenues stands at $556 million, mirroring year-over-year growth of 48.7%. The top line is expected to have benefited from strength across the company’s Imagery and Services segments, where demand continues to be strong owing to a dynamic global geopolitical environment and continuous expansion of commercial use cases for geospatial data and insights.
The consensus mark for earnings is pegged at $1.08, reflecting year-over-year increase of 12.5%. The upside is expected to have been driven by higher adjusted EBITDA from the DigitalGlobe acquisition.
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Business Services Q2 Earnings on Jul 31: VRSK, APTV & More
We are in the thick of second-quarter earnings season, which is showing overall growth. Per the latest Earnings Outlook, 265 S&P 500 companies (who collectively account for 66.2% of the index’s total market capitalization) have already reported results.
Total earnings of these companies increased 23.6% from the same period last year on 10.1% higher revenues, with 80.8% beating EPS estimates and 72.1% beating revenue estimates. Total second-quarter 2018 earnings are expected to be up 23.6% on 8.8% higher revenues.
Business Services to Record Solid Growth
Per the above report, stocks in the Business Services sector are expected to record top- and bottom-line growth of 6.4% and 22.1%, respectively. Notably, the sector is one of the 12 Zacks sectors (out of total 16 Zacks sectors) expected to register double or triple-digit earnings growth.
The outlook of Business Services is highly dependent on the health of the broader economy, which is currently quite favorable. The U.S. economy is benefiting from Trump administration’s business-friendly approach, including tax cuts, higher spending and repeal of regulations. This has improved the employment scenario and aided manufacturing and non-manufacturing activities.
The business services sectorhas performed well compared with the benchmark index year to date. The sector has gained 11.4%, which compares favorably with the Zacks S&P 500 Composite’s rally of 5.8% in the said time frame.
Stocks to Watch Out for Earnings on Jul 31
Given this bullish backdrop, investors interested in the Business Services stocks can watch out for three companies that are scheduled to report their second-quarter 2018 numbers on Jul 31.
Verisk Analytics, Inc. (VRSK - Free Report) is a data analytics and risk assessment company based in New Jersey. The company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $586 million, indicating a 12% year-over-year increase. The top line is expected to have benefited from solid revenue growth across all the segments — Insurance, Energy and Specialized Markets and Financial Services. The segments are too expected to improve organically as well as on an organic constant-currency basis.
The consensus estimate for earnings is pegged $1.01, mirroring year-over-year growth of 23.2%. Strong organic growth, 2017 tax reform policy (Tax Cuts and Jobs Act) and contributions from acquisitions are likely to have boosted the company’s bottom line. (Read more: Verisk Analytics Q2 Earnings: What's in the Cards?)
Verisk boasts a robust earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average beat of 4.8%.
Aptiv PLC (APTV - Free Report) is a global technology and mobility company, headquartered in Gillingham, Kent, UK. The company carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for second-quarter revenues is pegged at $3.6 billion, indicating a 2.2% sequential decrease. The consensus mark for earnings stands at $1.37, reflecting a sequential increase of 6.2%. The expected improvement in earnings is due to continuous margin expansion and $149 million share repurchase in the first quarter.
Aptiv’s earnings surprise history is also impressive. The company’s bottom line surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 3.5%.
Maxar Technologies Ltd. is a space and geospatial intelligence company, based in Westminster, CO. The company carries a Zacks Rank of 3.
The Zacks Consensus Estimate for second-quarter revenues stands at $556 million, mirroring year-over-year growth of 48.7%. The top line is expected to have benefited from strength across the company’s Imagery and Services segments, where demand continues to be strong owing to a dynamic global geopolitical environment and continuous expansion of commercial use cases for geospatial data and insights.
The consensus mark for earnings is pegged at $1.08, reflecting year-over-year increase of 12.5%. The upside is expected to have been driven by higher adjusted EBITDA from the DigitalGlobe acquisition.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>