Financial Transaction Stocks To Post Earnings: FISV, FIS, WU
Zacks Investment Research | May 01, 2016 11:14PM ET
We have another jam-packed earnings schedule for this week wherein some 132 odd S&P 500 companies including financial services companies like Fiserv Inc (NYSE:FIS) , Fidelity National Information Services, Inc. (NYSE:FIS) and The Western Union Company (NYSE:WU) will be reporting their quarterly results. As of Friday, Apr 29, 2016, we have had results from 310 S&P 500 members or 72.8% of the index’s total market capitalization. Total earnings for these index members are down 7.2% from the same period last year on 2.4% lower revenues.
Notably, despite the pull back in estimates, the technology and finance sectors have disappointed investors. The first quarter results for the technology sector were marred by weaker-than-expected numbers from behemoths like Apple (NASDAQ:AAPL) , Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) while low interest rates weighed on finance companies’ core lending margins and macro uncertainties dragged down their trading and investment banking businesses.
Tech sector total earnings of the companies, representing 85.3% of the sector’s total market capitalization in the S&P 500 index, were down 5.9% on 0.7% higher revenues. Finance sector total earnings of the companies, representing 72.7% of the sector’s total market capitalization in the S&P 500 index, were down 5.5% on 2.4% lower revenues.
Let’s take a look at how Fiserv and other financial services stocks are poised ahead of their scheduled announcements.
Fiserv Inc: Brookfield, WI based Fiserv provides financial services technology solutions to over 16,000 clients worldwide in the banking, insurance, healthcare and investment industries. The company’s broad customer base and strong contact wins are positives along with accretive acquisitions. However, tightening regulations in banking and intensifying competition can thwart the company’s growth prospects. Currently, Fiserv carries a 0.00% ESP which when combined with Zacks Rank #2 (Buy) makes it difficult to predict earnings beat. (Read: Zacks Investment Research
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