Business Service Stock Earnings On Aug 9: WAGE, HRI & More

The Q2 earning season is almost winding up with most of the sectors having wrapped up their releases, except the Retail sector which has a significant number of Q2 earnings yet to be reported. Almost 87% of the total S&P 500 index members have released their second-quarter results through Aug 5.

This week we’ll see the final onslaught, as we await releases of over 525 companies, including 26 S&P 500 club members hailing from Retail.

Per the latest Earnings Preview report, 433 S&P 500 companies have reported their second-quarter earnings so far with 70.7% topping bottom-line estimates and 52.7% coming in ahead of top-line expectations. The overall report suggests that earnings results have moved south 4.1%, on a 0.9% decrease in revenues from the same period last year.

The poor earnings picture is majorly attributable to the inherent weakness of the Energy sector. Six out of 16 Zacks sectors are expected to hover in the negative territory in Q2, with Energy, Basic Materials, Aerospace and Transportation suffering double-digit declines. The second quarter is headed to be the fifth in a row to suffer an earnings decline for the benchmark index.

The Business Services sector is looking reasonably good. For the sector, earnings are expected to grow 6%, while sales are touted to rise 6.6% over last year. The projected improvement is largely due to a recovery in oil prices in the second quarter and the faded effects of the dollar strength.

Let’s have a sneak peek at five major industry players to see how things are gearing up for the upcoming results.

WageWorks, Inc. (NYSE:WAGE) is scheduled to report second-quarter results after the market close on Aug 9. Headquartered in San Mateo, CA, WageWorks delivers its CDB (Consumer-Directed Benefits) programs through a benefits-as-a-service delivery model.

As per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for it to beat estimates. For the quarter to be reported, this Zacks Rank #3 stock has an Earnings ESP of 0.00%, thus making an earnings prediction uncertain. Over the trailing four quarters, the company has beaten estimates thrice, with an average positive surprise of 18.30%.

HERC Holdings, Inc. (NYSE:HRI) is scheduled to report second-quarter results before market open on Aug 9. Based in Bonita Springs, US, the company is an equipment rental supplier which sells second-hand equipment online and offers financing and warranty services on them. For the quarter to be reported, this Zacks Rank #3 stock has an Earnings ESP of 0.00%, thus making an earnings prediction uncertain. Over the trailing four quarters, the company has missed estimates thrice, with an average negative surprise of 80.30%.

Core-Mark Holding Company, Inc. (NASDAQ:CORE) is scheduled to report second-quarter results before market open on Aug 9. The company is a leading provider of fresh and broad-line supply solutions to the retail industry. For the quarter to be reported, this Zacks Rank #2 stock has an Earnings ESP of 0.00%, thus making an earnings prediction uncertain. Over the trailing four quarters, the company has beaten estimates twice, with an average positive surprise of 4.39%.

Vectrus, Inc. (NYSE:VEC) is scheduled to report second-quarter results after markets close on Aug 9. The company offers infrastructure asset management, logistics and supply chain management, and information technology and network communication services to the U.S. government. For the quarter to be reported, this Zacks Rank #3 stock has an Earnings ESP of 0.00%, thus making an earnings prediction uncertain. Over the trailing four quarters, the company has beaten estimates thrice, with an average positive surprise of 13.07%.

InnerWorkings Inc. (NASDAQ:INWK) is scheduled to report second-quarter results after market close on Aug 9. The company is a leading supplier of managed print and promotional procurement solutions to corporate clients. For the quarter to be reported, this Zacks Rank #3 stock has an Earnings ESP of 0.00%, thus making an earnings prediction uncertain. Over the trailing four quarters, the company has beaten estimates thrice, with an average positive surprise of 34.13%.