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Service Stocks' Oct 27 Q3 Earnings Roster: RSG, SPGI & FISV
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The widely-diversified Zacks Business Services sector, which houses consulting, outsourcing, staffing and waste management companies, to name a few, is a major beneficiary of economic health.
The sector benefited from broader factors, such as the strengthening of manufacturing and non-manufacturing activities, along with sector-specific factors like service essentiality, successful work-from-home models and digital transformation, in the third quarter of 2022. However, continued supply-chain disruptions and inflationary pressure remained headwinds.
Some major players like Republic Services, Inc. (RSG - Free Report) , S&P Global Inc. (SPGI - Free Report) andFiserv, Inc. are set to reveal their Q3 numbers tomorrow.
Q3 Tailwinds for Business Services
With both manufacturing and service activities in the pink, the demand for consulting services is rising steadily. Both the manufacturing PMI and the Services PMI, measured by the Institute for Supply Management, have stayed above the 50% mark for the past 28 months, indicating continued expansion.
The quarter witnessed strength in major manufacturing industries like computer & electronic products; machinery; electrical equipment; appliances & components; transportation equipment; food, beverage & tobacco products; and plastics & rubber products.
Among services industries, management of companies & support services; retail trade; wholesale trade; mining; utilities; construction; health care & social assistance; finance & insurance; information; educational services; and professional, scientific & technical services stayed healthy.
Earnings Picture So Far and Expectations
The third-quarter earnings for the S&P 500 members of the business services sector have been impressive so far. The latest Earnings Outlook suggests that earnings of those S&P 500 members of the business services sector that have reported results grew 16.7% year over year on 14.9% revenue growth, with 66.7% of the companies beating EPS estimates and 66.7% topping sales projections.
Total quarterly earnings of the S&P 500 members of the sector are currently anticipated to display 3% year-on-year growth. Revenues will likely reflect an 8.4% rise. This compares unfavorably with 27.6% and 14.3% growth in earnings and revenues in the third quarter of 2021, respectively.
RSG, SPGI, FISV in Spotlight
Here we discuss three business services companies, scheduled to report their third-quarter 2022 numbers on Oct 27.
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.
Republic Services: The company is a non-hazardous solid waste collection, transfer, disposal, recycling, and environmental services provider that currently has an Earnings ESP of -1.74% and currently carries a Zacks Rank of 4 (Sell).
The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $3.53 billion, indicating a year-over-year increase of 20.4%. This projected increase is likely to have been driven by internal growth and acquisitions/divestitures.
The Zacks Consensus Estimate for quarterly earnings is pegged at $1.21, suggesting a fall of 9% from the year-ago quarter. Rising expenses might hurt bottom-line results. (Read More: What's in the Cards for Republic Services’ Q3 Earnings?)
S&P Global Inc.:The company is a provider of ratings, benchmarks, analytics and data. The Zacks Consensus Estimate for S&P Global’s revenues is pegged at $2.91 billion, indicating growth of 39.4% from the year-ago reported figure. Strength in the Mobility and Engineering Solutions segments is likely to have aided the top line.
The consensus mark for earnings is pegged at $2.78 per share, calling for a decrease of 21.5% from the year-earlier quarter’s reported figure. Rising expenses are likely to have weighed on the bottom line.
Fiserv, Inc.: The Zacks Consensus Estimate for this integrated financial services technology provider’s revenues stands at $4.27 billion, indicating growth of 7.7% from the year-ago reported figure. Strength across all the segments — Merchant Acceptance, FinTech and Payments and Network — is likely to have boosted the company’s top line.
The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at $1.7 per share, indicating growth of 15.7% growth from the year-ago quarter’s reported figure.
Image: Bigstock
Service Stocks' Oct 27 Q3 Earnings Roster: RSG, SPGI & FISV
The widely-diversified Zacks Business Services sector, which houses consulting, outsourcing, staffing and waste management companies, to name a few, is a major beneficiary of economic health.
The sector benefited from broader factors, such as the strengthening of manufacturing and non-manufacturing activities, along with sector-specific factors like service essentiality, successful work-from-home models and digital transformation, in the third quarter of 2022. However, continued supply-chain disruptions and inflationary pressure remained headwinds.
Some major players like Republic Services, Inc. (RSG - Free Report) , S&P Global Inc. (SPGI - Free Report) and Fiserv, Inc. are set to reveal their Q3 numbers tomorrow.
Q3 Tailwinds for Business Services
With both manufacturing and service activities in the pink, the demand for consulting services is rising steadily. Both the manufacturing PMI and the Services PMI, measured by the Institute for Supply Management, have stayed above the 50% mark for the past 28 months, indicating continued expansion.
The quarter witnessed strength in major manufacturing industries like computer & electronic products; machinery; electrical equipment; appliances & components; transportation equipment; food, beverage & tobacco products; and plastics & rubber products.
Among services industries, management of companies & support services; retail trade; wholesale trade; mining; utilities; construction; health care & social assistance; finance & insurance; information; educational services; and professional, scientific & technical services stayed healthy.
Earnings Picture So Far and Expectations
The third-quarter earnings for the S&P 500 members of the business services sector have been impressive so far. The latest Earnings Outlook suggests that earnings of those S&P 500 members of the business services sector that have reported results grew 16.7% year over year on 14.9% revenue growth, with 66.7% of the companies beating EPS estimates and 66.7% topping sales projections.
Total quarterly earnings of the S&P 500 members of the sector are currently anticipated to display 3% year-on-year growth. Revenues will likely reflect an 8.4% rise. This compares unfavorably with 27.6% and 14.3% growth in earnings and revenues in the third quarter of 2021, respectively.
RSG, SPGI, FISV in Spotlight
Here we discuss three business services companies, scheduled to report their third-quarter 2022 numbers on Oct 27.
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.
Republic Services: The company is a non-hazardous solid waste collection, transfer, disposal, recycling, and environmental services provider that currently has an Earnings ESP of -1.74% and currently carries a Zacks Rank of 4 (Sell).
The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $3.53 billion, indicating a year-over-year increase of 20.4%. This projected increase is likely to have been driven by internal growth and acquisitions/divestitures.
The Zacks Consensus Estimate for quarterly earnings is pegged at $1.21, suggesting a fall of 9% from the year-ago quarter. Rising expenses might hurt bottom-line results. (Read More: What's in the Cards for Republic Services’ Q3 Earnings?)
Republic Services, Inc. Price and EPS Surprise
Republic Services, Inc. price-eps-surprise | Republic Services, Inc. Quote
S&P Global Inc.:The company is a provider of ratings, benchmarks, analytics and data. The Zacks Consensus Estimate for S&P Global’s revenues is pegged at $2.91 billion, indicating growth of 39.4% from the year-ago reported figure. Strength in the Mobility and Engineering Solutions segments is likely to have aided the top line.
The consensus mark for earnings is pegged at $2.78 per share, calling for a decrease of 21.5% from the year-earlier quarter’s reported figure. Rising expenses are likely to have weighed on the bottom line.
S&P Global has an Earnings ESP of -0.67% and carries a Zacks Rank #4. (Read more: What's in the Cards for S&P Global in Q3 Earnings?)
S&P Global Inc. Price and EPS Surprise
S&P Global Inc. price-eps-surprise | S&P Global Inc. Quote
Fiserv, Inc.: The Zacks Consensus Estimate for this integrated financial services technology provider’s revenues stands at $4.27 billion, indicating growth of 7.7% from the year-ago reported figure. Strength across all the segments — Merchant Acceptance, FinTech and Payments and Network — is likely to have boosted the company’s top line.
The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at $1.7 per share, indicating growth of 15.7% growth from the year-ago quarter’s reported figure.
Fiserv has an Earnings ESP of -0.64% and a Zacks Rank #4. (Read more: Fiserv to Post Q3 Earnings: What's in the Cards?)
Fiserv, Inc. Price and EPS Surprise
Fiserv, Inc. price-eps-surprise | Fiserv, Inc. Quote
Fiserv, Inc. Price and EPS Surprise
Fiserv, Inc. price-eps-surprise | Fiserv, Inc. Quote
Fiserv, Inc. Price and EPS Surprise
Fiserv, Inc. price-eps-surprise | Fiserv, Inc. Quote
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