Hudson Pacific Properties (HPP) Q3 FFO and Revenues Miss Estimates

Financial stocks fell in late Tuesday afternoon trading, with the NYSE Financial Index down 0.5% and the Financial Select Sector SPDR Fund (XLF) off 0.2%.

The Philadelphia Housing Index dropped 2.2%, and the Real Estate Select Sector SPDR Fund (XLRE) declined 1%.

Bitcoin (BTC/USD) rose 0.8% to $89,256, and the yield for 10-year US Treasuries jumped 12 basis points to 4.43%.

In economic news, US consumers' inflation expectations fell "slightly" at the short-, medium-, and long-term horizons in October, according to a survey by the New York Fed.

Official data are expected to show Wednesday that US consumer inflation rose 0.2% sequentially and 2.6% annually last month, according to a Bloomberg-compiled consensus.

The National Federation of Independent Business' monthly Small Business Optimism Index rose to 93.7 in October from 91.5 in September and 90.7 a year earlier.

In corporate news, H&R Block shares fell 2.2%. The company has reached a proposed settlement with the Federal Trade Commission, agreeing to pay $7 million for consumer redress and to make key adjustments to its tax filing services by the 2025 tax season, the FTC said.

Hudson Pacific Properties shares tumbled 7.9% after Jefferies downgraded the stock to hold from buy.

Dime Community Bancshares shares dropped 2.2% after the company priced its offering of 3.9 million shares at $32 apiece to raise $125 million.

ACNB received all regulatory approvals required for the all-stock acquisition of OTC-listed Traditions Bancorp. ACNB shares were falling 2.6%.

Atlanticus Holdings Corporation (ATLC) came out with quarterly earnings of $1.27 per share, beating the Zacks Consensus Estimate of $1.23 per share. This compares to earnings of $1.03 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 3.25%. A quarter ago, it was expected that this company would post earnings of $0.87 per share when it actually produced earnings of $0.99, delivering a surprise of 13.79%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Atlanticus, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $350.95 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 7.44%. This compares to year-ago revenues of $294.91 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Atlanticus shares have added about 8% since the beginning of the year versus the S&P 500's gain of 24.3%.

What's Next for Atlanticus?

While Atlanticus has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Atlanticus: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.22 on $338.01 million in revenues for the coming quarter and $4.54 on $1.27 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, StoneX Group Inc. (SNEX), is yet to report results for the quarter ended September 2024.

This company is expected to post quarterly earnings of $2.05 per share in its upcoming report, which represents a year-over-year change of +26.5%. The consensus EPS estimate for the quarter has been revised 9% higher over the last 30 days to the current level.

StoneX Group Inc.'s revenues are expected to be $874.7 million, up 12.4% from the year-ago quarter.

Zacks Investment Research

StoneX Group Inc. (SNEX) shares rallied 5.4% in the last trading session to close at $98.76. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.4% gain over the past four weeks.

StoneX Group shares have risen during four trading sessions in a row, hitting a 52-week high of $101.43 on Wednesday, driven by a rally following Donald Trump's presidential election victory. Investors are optimistic about potential regulatory easing under the new administration, boosting stocks in the finance sector. As a provider of financial services like clearing and execution, and trading platforms, StoneX has attracted increased investor interest.

This company is expected to post quarterly earnings of $2.05 per share in its upcoming report, which represents a year-over-year change of +26.5%. Revenues are expected to be $874.7 million, up 12.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For StoneX Group, the consensus EPS estimate for the quarter has been revised 9% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on SNEX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold).

StoneX Group is part of the Zacks Financial - Miscellaneous Services industry. Sachem Capital Corp. (SACH), another stock in the same industry, closed the last trading session 0.4% lower at $2.26. SACH has returned -7% in the past month.

For Sachem Capital, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.09. This represents a change of -25% from what the company reported a year ago. Sachem Capital currently has a Zacks Rank of #3 (Hold).

Zacks Investment Research