The widely diversified business services sector steadily gathered steam through the second quarter of 2021, backed by strength across both manufacturing and non-manufacturing activities, relaxation of restrictions and increased vaccination drives.
The quarter witnessed growth in major manufacturing industries like machinery; electrical equipment, appliances & components; transportation equipment, food, beverage & tobacco products; printing & related support activities; computer & electronic products; and petroleum & coal products.
Among services industries, notable growth came in from retail trade; wholesale trade; transportation & warehousing; management of companies & support services; accommodation & food services; mining; utilities; construction; health care & social assistance; finance & insurance; information; educational services; and professional, scientific & technical services.
Earnings Picture So Far and Expectations
The second-quarter earnings for the S&P 500 members of the Business Services sector have been outstanding, so far. The sector had a commendable start with major players like FLEETCOR, S&P Global, Waste Management, GartnerIT, and Fiserv FISV beating on both earnings and revenues.
The latest Earnings Preview suggests that earnings for those S&P 500 members of the business services sector that have reported results grew 36.6% year over year on 18% revenue growth.
Total quarterly earnings for the S&P 500 members of the sector are currently anticipated to display 40% year-on-year growth, and revenues will likely reflect a 19.6% rise. This compares favorably with 8.5% and 3.9% growth in earnings and revenues in the first quarter of 2021, respectively.
JAMF, FLYW, PAY, NVEE and NNOX in Spotlight
Here we discuss five business services companies scheduled to report second-quarter 2021 results on Aug 10 after market close.
Our quantitative model suggests that the combination of the following two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — increases the odds of a positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Jamf Holding Corp. JAMF: This Minnesota-based company provides cloud software platform for Apple’s infrastructure and security platform.
The Zacks Consensus Estimate for revenues is pegged at $82.9 million, indicating growth of 33.2% from the year-ago reported figure. Strength across mobile work, education technology and digital health, coupled with the acquisition of the assets of cmdSecurity and Wandera, are expected to have aided the company’ top line.
The consensus mark for earnings is pegged at 5 cents per share, flat with the year-earlier reported figure. Improvement in operational metrics is likely to have aided the bottom line.
Jamf has an Earnings ESP of 0.00% and carries a Zacks Rank #3.
Jamf Holding Corp. Price and EPS Surprise
Jamf Holding Corp. price-eps-surprise | Jamf Holding Corp. Quote
Flywire Corporation FLYW: This Massachusetts-based company operates as a payment enablement and software company in the United States and internationally.
Flywire has an Earnings ESP of 0.00% and carries a Zacks Rank #3.
Flywire Corporation Price and EPS Surprise
Flywire Corporation price-eps-surprise | Flywire Corporation Quote
Paymentus Holdings, Inc. PAY: This Washington-based company provides electronic bill presentment and payment services.
Paymentus has an Earnings ESP of 0.00% and carries a Zacks Rank #3.
Paymentus Holdings, Inc. Price and EPS Surprise
Paymentus Holdings, Inc. price-eps-surprise | Paymentus Holdings, Inc. Quote
NV5 Global, Inc. NVEE:This Florida-based company provides professional and technical engineering and consulting services to public and private sector clients in the infrastructure, utility services, construction, real estate, and environmental markets in the United States and internationally.
The Zacks Consensus Estimate for revenues is pegged at $174.72 million, indicating growth of 7.4% from the year-ago reported figure. The consensus mark for earnings is pegged at 99 cents per share, indicating growth of 6.5% from the year-earlier reported figure.
The company is expected to have gained from solid demand for its utility, infrastructure, and public sector services. Improvement in operational metrics and rise in cash flow are likely to have aided the bottom line.
NV5 Global has an Earnings ESP of 0.00% and carries a Zacks Rank #3.
NV5 Global, Inc. Price and EPS Surprise
NV5 Global, Inc. price-eps-surprise | NV5 Global, Inc. Quote
Nano-X Imaging Ltd.,NNOX: This Israel-based development-stage company develops, produces, and commercializes digital X-ray source technology for the medical imaging industry worldwide.
Nano-X has an Earnings ESP of 0.00% and carries a Zacks Rank #3.
NanoX Imaging Ltd. Price and EPS Surprise
NanoX Imaging Ltd. price-eps-surprise | NanoX Imaging Ltd. Quote
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