2014

Zacks Industry Outlook Highlights: StarTek, Vistaprint, Broadridge Financial Solutions, Ritchie Bros. Auctioneers and Copart

CHICAGO, Nov. 22, 2013 /PRNewswire/ -- Today, Zacks Equity Research discusses the U.S. Business Services, including StarTek, Inc. (NYSE: SRT-Free Report), Vistaprint N.V. (Nasdaq: VPRT-Free Report), Broadridge Financial Solutions, Inc. (NYSE: BR-Free Report), Ritchie Bros. Auctioneers Inc. (NYSE: RBA-Free Report) and Copart, Inc. (Nasdaq: CPRT-Free Report).

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Industry: Business Services

 

Link:  http://www.zacks.com/commentary/30033/business-services-stock-outlook---nov-2013

 

With almost 95% of the companies under the Business Service sector having reported their third quarter results, let's take a look at how things shaped up for the sector.

 

Earnings for the business sector grew 8.6% in the third quarter faring better than the overall 4.6% growth for the S&P 500 as a whole. The earnings growth pace, however, moved south compared with 9.9% growth in the second quarter.

 

Revenues showed an improvement of 3.9% faring much better than the S&P 500's year-over-year average of 2.9%. Revenue growth also improved sequentially.

 

In terms of surprises, the sector's performance was stronger than the broader market, with 84.2% of Business Services companies beating earnings expectations, compared to the 'beat ratio' of 65.7% for the S&P 500.

 

Looking ahead at the fourth quarter, earnings are expected to improve 15.2% compared with 9.5% for the broader market. Revenue growth is expected at 3.6% for the sector compared with a minimal improvement of 0.3% for the S&P 500.

 

For a detailed look at the earnings outlook for the Business Services and other sectors, please check our weekly Zacks Earnings Trends report.

 

Industry Review

Outsourcing: Of the 17 companies in our coverage, surprise from the industry ranged from -56.25% to 300% with an average of about 43%. The highest positive surprise came from StarTek, Inc. (NYSE: SRT-Free Report) with Vistaprint N.V. (Nasdaq: VPRT-Free Report) throwing the biggest negative surprise. For the upcoming quarter, we expect Zacks Ranked #1 Broadridge Financial Solutions, Inc. (NYSE: BR-Free Report) to come up with positive earnings surprise with a year-over-year increase of 38.2%.  

 

Auction/Valuation: Of the 4 companies under this category, Ritchie Bros. Auctioneers Inc. (NYSE: RBA-Free Report) came up with the highest surprise of 36.4% while Copart, Inc. (Nasdaq: CPRT-Free Report) delivered the lowest surprise of -20%. Average earnings surprise for the industry was 5.3%.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

 

 

 

 

SOURCE Zacks Investment Research, Inc.



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