Finance Stocks Q3 Earnings Roster For Nov 1: CACC, ICE, FTAI

Recovery in oil prices and improving domestic economic factors has strengthened the industry backdrop for the finance sector. Moreover, an improving labor market with lower unemployment rate and a recovering housing market supported growth in the industry. However, the low interest rate environment will adversely impact the companies’ performance, as the Fed continues to maintain a dovish stance regarding the next rate hike.

Notably, the earnings season for the Finance sector is almost in its final phase. Per the latest Earnings Preview report, about 75% of the S&P 500 companies in the sector have reported results for third-quarter 2016 so far. Total earnings for these companies increased 9.3% year over year on a revenue improvement of 5.9%. Notably, 74.6% companies have surpassed bottom-line expectations and 73.2% beat on top line.

Performance of the companies so far reflects a significant improvement over the prior quarter. The report further states overall earnings for the S&P 500 stocks in the Finance sector are expected to be up 12.3% year over year in the third quarter. This compares with a 5.2% decline in earnings in the previous quarter.

Our quantitative model offers some insights into stocks that are about to report their earnings. Per the model, in order to be confident of an earnings beat, a stock needs to have the right combination of the two key ingredients, a positive Earnings ESP and a favorable Zacks Rank – Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold).

Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

Let’s see what’s in store for the following three finance stocks that are expected to report their third-quarter results tomorrow.

Credit Acceptance Corp. (NASDAQ:CACC) is scheduled to release its results after the market closes. The Zacks Consensus Estimate of $4.27 has remained steady over the past 30 days and reflects a year-over-year growth of 13.3%. However, we cannot conclusively predict an earnings beat for the company as it has an Earnings ESP of 0.00% with a Zacks Rank #3. You can see the complete list of today’s Zacks Rank #1 stocks here.

Nonetheless, Credit Acceptance has posted positive earnings surprises in three of the trailing four quarters.

Intercontinental Exchange, Inc. (NYSE:ICE) is slated to post its results before the market opens. Improved revenues as well as prudent expense management are expected to drive the company’s results in the upcoming release. Further, trading volumes are expected to have improved. However, exposure to low interest rates and demand for low-priced products might have weighed on the company’s desired upside in the trading volumes. (Read more: Intercontinental Exchange Q3 Earnings: Beat in Store?)

The Zacks Consensus Estimate has declined by nearly 3% over the past 30 days to $3.22. Nonetheless, it depicts a year-over-year improvement of 10.7%. Moreover, the chances of Intercontinental Exchange posting an earnings beat in its third-quarter are high as it carries a Zacks Rank #3 with an Earnings ESP of +0.31%.

Also, the company boasts a decent earnings surprise history in the trailing four quarters.

Fortress Transportation and Infrastructure Investors LLC (NYSE:FTAI) is expected to report its results after the market closes. The Zacks Consensus Estimate for the company has widened to a loss of 5 cents over the past 30 days.

Moreover, Fortress Transportation and Infrastructure Investorsin unlikely to beat estimates in the upcoming release as it carries a Zacks Rank #3 with an Earnings ESP of -20.00%.

In addition, the company has posted a negative earnings surprise of nearly 89% in the trailing four quarters.

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