Zacks Industry Outlook Highlights: StarTek, Vistaprint, Broadridge Financial
Solutions, Ritchie Bros. Auctioneers and Copart
CHICAGO, Nov. 22, 2013
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).
Industry: Business Services
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.
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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