You are using an older browser version. Please use a supported version for the best MSN experience.

Business Services Q3 Earnings on Oct 22: IPG, TRU, HCSG

Zacks Equity Research logoZacks Equity Research 10/21/2019 Zacks Equity Research

The picture so far this earnings season has been encouraging for key players in the Business Services space like Omnicom Group Inc. OMC and IHS Markit Ltd. INFO. Each of these companies delivered an earnings beat.

The business services was on a strong footing driven by economic strength and stability that kept service activities in good shape in the third quarter. The sector was buoyed by a strong labor market, low unemployment and inflation.

Notably, U.S. GDP grew at an annualized rate of 2% in second-quarter 2019 per the “second” as well as the "third" estimate released by the Bureau of Economic Analysis. The Fed expects GDP growth of 2.2% in the third quarter and 2.1% in 2019. September was the 116th month of consecutive growth in non-manufacturing activities with ISM-measured Non-Manufacturing Index touching 52.6%.

Since business services firms have lower foreign exposure compared with goods companies and incur lower foreign input costs, the industry was less affected by trade war in the third quarter.

The Zacks Business Services sector currently carries a Zacks Sector Rank in the top 38% (6 out of 16 sectors). It has gained 25.9% year to date, outperforming 20.4% rally of the Zacks S&P 500 composite.

a close up of a map© Provided by Zacks Investment Research Inc

Key Releases on Oct 22

Given this backdrop, investors interested in business services stocks can watch out for three companies that are scheduled to report third-quarter 2019 results on Oct 22.

According to the Zacks model, a company needs the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Advertising and marketing services provider The Interpublic Group of Companies, Inc. IPG will release its financial numbers before the bell.

Favorable impact of organic growth and acquisitions is likely to have partially offset the negative impact of foreign currency movement on the company. This is likely to get reflected in its third-quarter revenues, the Zacks Consensus Estimate for which is pegged at $2.07 billion, indicating growth of 9.3% from the year-ago quarter reported figure.

The Zacks Consensus Estimate for earnings per share in the to-be-reported quarter is pegged at 48 cents, flat year over year.

The company has an impressive earnings surprise history, having surpassed estimates in all the trailing four quarters, with the average beat being 25.5%.

The company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Interpublic Group of Companies, Inc.  Price and EPS Surprise

a close up of a map: Interpublic Group of Companies, Inc. (The) Price and EPS Surprise© Provided by Zacks Investment Research Inc Interpublic Group of Companies, Inc. (The) Price and EPS Surprise

Interpublic Group of Companies, Inc. (The) price-eps-surprise | Interpublic Group of Companies, Inc. (The) Quote

Risk and information solutions provider TransUnion TRU will release its quarterly numbers before the bell.

Acquisitions of iovation, HPS, Rubixis, Callcredit and TruSignal are expected to have driven the company’s revenues, the consensus estimate for which is pegged at $676.8 million, indicating year-over-year growth of 12.1%.

The consensus estimate for earnings stands at 71 cents per share, indicating growth of 9.2% from the year-ago quarter reported figure.

TransUnion delivered average four-quarter positive earnings surprise of 3.9%. It has an Earnings ESP of +1.13% and a Zacks Rank #3.

TransUnion Price and EPS Surprise

a close up of a map: TransUnion Price and EPS Surprise© Provided by Zacks Investment Research Inc TransUnion Price and EPS Surprise

TransUnion price-eps-surprise | TransUnion Quote

Provider of management, administrative, and operating services Healthcare Services Group, Inc. HCSG will release its financial numbers after the bell.

Termination of a number of customers, and adjustments to the company's contractual relationship with Genesis Healthcare are likely to have negatively impacted the top line. The consensus mark for revenues is pegged at $451.3 million, indicating year-over-year decline of 11%.

For earnings, the consensus mark is pegged at 27 cents, suggesting decline of 22.9% from the year-ago quarter reported figure.

Healthcare Services delivered average four-quarter negative earnings surprise of 21.2%. It has an Earnings ESP of 0.00% and a Zacks Rank #3.

Healthcare Services Group, Inc. Price and EPS Surprise

a close up of a map: Healthcare Services Group, Inc. Price and EPS Surprise© Provided by Zacks Investment Research Inc Healthcare Services Group, Inc. Price and EPS Surprise

Healthcare Services Group, Inc. price-eps-surprise | Healthcare Services Group, Inc. Quote

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>

Poll

  • Oil prices have been volatile. How are you reacting?

    Not scientifically valid. Results are updated every minute.

    Total responses:21849VOTES
AdChoices
AdChoices
AdChoices

More From Zacks Equity Research

image beaconimage beaconimage beacon