The third-quarter 2016 earnings for the Finance sector is in its last phase. Most of the industry participants have reported better-than-expected results so far. The sector, as a whole, witnessed a significant improvement in performance, despite a challenging operating environment.
Per the latest Earnings Preview, nearly 99% of the S&P 500 companies in the Finance sector reported results for the third quarter as of Nov 4, 2016. Total earnings for these companies increased 12.7% year over year on a revenue improvement of 6.7%. Notably, 73% companies surpassed the bottom-line expectations and 75.3% beat on the top line.
In fact, overall earnings for the S&P 500 stocks in the Finance sector are projected to be up 11.8% year over year in the third quarter. This compares favorably with a 5.2% decline in the prior quarter.
Recovery in oil prices and improving domestic economic factors chiefly contributed to the sector’s recovery. Additionally, a recovering housing market and an improving labor market acted in favor of the sector.
On the other hand, global concerns and a persistent low interest rate environment were the undermining factors.
Let’s take a look at the two finance stocks that are slated to report their third-quarter 2016 earnings on Nov 10.
Manulife Financial Corporation (NYSE:MFC) : The Zacks Consensus Estimate for the stock for the current year has remained stable ahead of its earnings release. The estimate of $1.34 per share reflects year-over-year growth of 2.54%.
Further, based on our proven model, Manulife Financial is less likely to beat the Zacks Consensus Estimate in the forthcoming release, as it carries a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Our quantitative model highlights those stocks that have the combination of a positive Earnings ESP and a favorable Zacks Rank – Zacks Rank #1, #2 (Buy) or #3 (Hold) – for an earnings surprise call. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Moreover, the company does not boast a decent earnings surprise history. The stock lagged the Zacks Consensus Estimate in two of the trailing four quarters, recording an average negative earnings surprise of 2.8%.
Care Capital Properties, Inc. (NYSE:CCP) : The Zacks Consensus Estimate for the stock for the current year has remained constant ahead of its earnings release. The estimate of $3.03 per share reflects a year-over-year decline of 11.4%.
Also, the stock is less likely to beat the Zacks Consensus Estimate in the to-be-reported quarter, as it carries a Zacks Rank #3 and an Earnings ESP of 0.00%.
Moreover, the company does not have a track record of earnings surprise history over the trailing four quarters.
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MANULIFE FINL (MFC): Free Stock Analysis Report
CARE CAP PROPRT (CCP): Free Stock Analysis Report
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Zacks Investment Research