Zacks Industry Outlook Highlights: Healthcare Services Group, Cardtronics, Avis Budget Group, Furmanite and ENGlobal
CHICAGO, July 25, 2013 /PRNewswire/ -- Today, Zacks Equity Research discusses the U.S. Business Services, including Healthcare Services Group, Inc. (Nasdaq: HCSG-Free Report), Cardtronics, Inc. (Nasdaq: CATM-Free Report), Avis Budget Group, Inc. (Nasdaq: CAR-Free Report), Furmanite Corporation (NYSE: FRM-Free Report) and ENGlobal Corporation (Nasdaq: ENG-Free Report).
Industry: Business Services
With companies starting to release their second quarter financial reports, let's take a look at how things are shaping up for the sector.
Earnings for the business sector have grown 9.7% in first quarter, faring better than the S&P Group's earnings growth of 2.4%. Earnings were also better than 8.6% growth achieved in the last quarter of 2012.
Revenues showed an improvement of 2.8%, faring much better than the S&P 500's year-over-year average of negative 1.1%. Revenue growth also improved sequentially.
In terms of surprises, the sector's performance was weaker than the broader market, with only 52.6% of Business Services companies beating earnings expectations, compared to the 'beat ratio' of 65.2% for the S&P 500.
Looking ahead at the second quarter results, earnings are expected to improve 9.7% compared to a minimal improvement of 1% for the broader market. Revenue growth is expected to be 1.6% for the sector but decline 0.8% for the S&P 500.
Consolidations in Q2 Mergers and acquisitions play an important part in not only strengthening a company's foothold by grabbing more market share but also edging out competition.Healthcare Services Group, Inc.
), provider of housekeeping, laundry, linen, facility maintenance and dietary services to nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States, entered into a deal with Platinum Health Services, LLC to purchase all of its operating assets.
Cardtronics, Inc. (Nasdaq: CATM-Free Report) is busy making acquisitions. This provider of automated consumer financial services, purchased the assets of Rohnert Park, CA-based Merrimak ATM Group, LLC in June. In May it purchased the assets of Portland, OR-based Aptus Financial.
Global vehicle rental giant
Avis Budget Group, Inc.
) acquired Payless Car Rental, the sixth largest car rental company.
Furmanite Corporation (NYSE: FRM-Free Report), provider of specialized technical services, has also entered into a deal to buy the Gulf coast operations of ENGlobal Corporation (Nasdaq: ENG-Free Report). These are ENGlobal Corp.'s professional service assets.
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