Symbiotic Set to Report Q4 Earnings: Here's What You Should Know

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Omnicom Group (OMC). OMC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

We should also highlight that OMC has a P/B ratio of 4.52. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.24. Over the past 12 months, OMC's P/B has been as high as 4.84 and as low as 3.92, with a median of 4.35.

Finally, we should also recognize that OMC has a P/CF ratio of 12.23. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. OMC's P/CF compares to its industry's average P/CF of 13.55. Over the past 52 weeks, OMC's P/CF has been as high as 12.32 and as low as 9.29, with a median of 10.99.

Value investors will likely look at more than just these metrics, but the above data helps show that Omnicom Group is likely undervalued currently. And when considering the strength of its earnings outlook, OMC sticks out at as one of the market's strongest value stocks.

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Avis Budget Group, Inc. CAR reported lower-than-expected third-quarter 2024 results.

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Despite the earnings miss, the stock has gained 12% since the earnings release on Oct. 31, 2024.

CAR’s earnings of $6.7 per share missed the Zacks Consensus Estimate by 22.2% and decreased 60.4% from the year-ago quarter’s actual. Total revenues of $3.5 billion missed the consensus estimate by 2.3% and declined 2.4% on a year-over-year basis.

Avis Budget’s shares have declined 47.6% in the year-to-date period compared with 4.6% decrease of the industry and 27.7% growth of the Zacks S&P 500 composite.

YTD Price Performance

Avis Budget’s Segmental Revenues

Revenues from the Americas amounted to $2.6 billion, indicating a fall of 4% from the year-ago quarter. The metric missed our estimate of $2.7 billion.

International revenues were $840 million, up 1% on a year-over-year basis. However, the figure missed our expectation of $845.6 million. Strong international inbound and intra-European cross-border travel drove this region’s revenues.

CAR’s Profitability

Adjusted EBITDA was $503 million, down 45% from third-quarter 2023. The Americas segment reported adjusted EBITDA of $384 million, which declined 48% from the year-ago quarter. Internationally, adjusted EBITDA of $139 million decreased 29%.

Balance Sheet and Cash Flow of CAR

Avis Budget exited the third quarter with cash and cash equivalents of $602 million compared with $511 million at the end of the second quarter of 2024. Corporate debt amounted to $6 billion compared with $5.3 billion reported in the preceding quarter.

CAR generated $1.3 billion in net cash from operating activities. Adjusted free cash flow utilized amounted to $600 million. Capital expenditures were $40 million.

Avis Budget currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot of CAR’s Peers

Republic Services, Inc. RSG reported mixed third-quarter 2024 results.

RSG’s earnings per share (excluding 1 cent from non-recurring items) of $1.8 outpaced the Zacks Consensus Estimate by 11.7% and grew 17.5% from the year-ago quarter. Revenues of $4.1 billion missed the consensus mark by a slight margin but increased 6.5% on a year-over-year basis.

Omnicom Group Inc. OMC reported impressive third-quarter 2024 results.

OMC's earnings of $2 per share beat the consensus estimate by 3.1% and rose 9.1% from the year-ago quarter. Total revenues of $3.9 billion outpaced the consensus mark by 2.3% and grew 8.5% on a year-over-year basis.

Fiserv, Inc. FI reported mixed third-quarter 2024 results.

FI’s adjusted earnings per share (excluding $1.3 from non-recurring items) of $2.3 beat the consensus mark by 2.2% and gained 17.4% year over year. Adjusted revenues of $4.9 billion missed the consensus estimate by a slight margin but rose a tad on a year-over-year basis.

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H&R Block, Inc. HRB reported impressive first-quarter fiscal 2025 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.

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Adjusted loss came in at $1.17 per share, narrower than the Zacks Consensus Estimate of a loss of $1.21 per share. Loss declined 11.4% year over year. Revenues of $193.8 million beat the consensus estimate by 2.7% and gained 5.5% on a year-over-year basis.

H&R Block, Inc. Price, Consensus and EPS Surprise

H&R Block, Inc. price-consensus-eps-surprise-chart | H&R Block, Inc. Quote

Other Quarterly Numbers

Revenues from U.S. tax preparation and related services were $93.7 million, up 3.7% year over year.Revenues from Financial services were $8.8 million, a decline of 1.1% year over year. International revenues of $64.9 million increased 7.1% year over year. Wave revenues registered year over year increase of 10.3% to $26.4 million.

H&R Block exited the quarter with cash and cash equivalents of $415.9 million compared with $1.1 billion at the end of the preceding quarter. Long-term debt was $1.5 billion, flat with the previous quarter. The company used $328.6 billion of cash in operating activities while capex was $18.8 million.

FY25 Outlook

For fiscal 2025, H&R Block reaffirmed its revenue guidance of $3.69-$3.75 billion. The midpoint of the guided range meets the current Zacks Consensus Estimate. Adjusted eps is expected to be between $5.15-$5.35, the midpoint ($5.2) of which is lower than the current consensus estimate of $5.25. HRB expects EBITDA to be $975-$1.02 billion and the effective tax rate is updated to around 13%.

H&R Block currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshots

Omnicom OMC reported impressive third-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

OMC’s earnings of $2 per share beat the consensus estimate by 3.1% and increased 9.1% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 2.3% and increased 8.5% year over year.

Equifax EFX reported mixed third-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.

EFX’s adjusted earnings were $1.8 per share, beating the Zacks Consensus Estimate by a slight margin and increasing by 5.1% from the year-ago quarter’s actual. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 9.3% from the year-ago quarter.

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Broadridge Financial Solutions, Inc.’s BR first-quarter fiscal 2025 earnings matched the Zacks Consensus Estimate, but revenues lagged the same.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Adjusted earnings of $1 per share decreased 8.3% from the year-ago quarter. Total revenues of $1.42 billion missed the consensus mark by 3.9% and were down slightly year over year.

Recurring revenues of $900 million increased 3% year over year on a reported basis and 4% on a constant currency basis.

The company’s stock has gained 28.1% over the past year compared with the 34.8% rally of the industry it belongs to and the 37.7% growth of the Zacks S&P 500 Composite.

Broadridge Financial Solutions, Inc. Price, Consensus and EPS Surprise

Broadridge Financial Solutions, Inc. price-consensus-eps-surprise-chart | Broadridge Financial Solutions, Inc. Quote

Other Key Q1 Metrics

Revenues in the Investor Communication Solutions segment decreased 1% from the year-ago quarter’s level to $1 billion, slightly above our estimate of $1.52 billion. The Global Technology and Operations segment’s revenues amounted to $407 million, lagging our estimate of $437.5 million but increasing 1% on a year-over-year basis.

Adjusted operating income of $185 million decreased 7% from the year-ago quarter. Adjusted operating income margin of 13% declined 90 basis points year over year.

Broadridge exited the quarter with a cash and cash equivalents balance of $292.8 million compared with $304.4 million at the end of the preceding quarter. Long-term debt was $3.6 billion compared with $3.4 billion at the end of the prior quarter.

The company used $125.5 million of cash in operating activities and capex was $7.9 million in the quarter. It paid out $7.9 million in dividends.

Fiscal 2025 Guidance

Broadridge raised its revenue guidance. The company expects recurring revenue growth to be 6-8% compared with the previous expectation of 5-7%. Adjusted earnings per share growth is expected to be 8-12%. Adjusted operating income margin is estimated to be around 20%.

Broadridge currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshots

Omnicom OMC reported impressive third-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

OMC’s earnings of $2 per share beat the consensus estimate by 3.1% and increased 9.1% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 2.3% and increased 8.5% year over year.

Equifax EFX reported mixed third-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.

EFX’s adjusted earnings were $1.8 per share, beating the Zacks Consensus Estimate by a slight margin and increasing by 5.1% from the year-ago quarter’s actual. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 9.3% from the year-ago quarter.

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CRA International, Inc. CRAI reported impressive third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The stock has risen 9.6% since the earnings release in response to the better-than-expected results and strong guidance.

CRAI reaffirmed its 2024 constant currency revenue guidance range to $670 million-$685 million in the third quarter of 2024. The guidance range's midpoint ($677.5 million) is higher than the current Zacks Consensus Estimate of $676.2 million. The company continues to expect a non-GAAP EBITDA margin in the range of 12.2%-13%.

Quarterly adjusted EPS came in at $1.77, which surpassed the Zacks Consensus Estimate by 12% and increased 56.6% year over year. Revenues of $167.7 million beat the consensus mark by a slight margin and increased 13.7% from the year-ago quarter.

Charles River Associates Price, Consensus and EPS Surprise

Charles River Associates price-consensus-eps-surprise-chart | Charles River Associates Quote

CRAI: Other Quarterly Details

The company delivered 76% utilization, while the headcount was down 3.6% year over year. Non-GAAP EBITDA increased 54.8% year over year to $21.3 million. The non-GAAP EBITDA margin improved 340 basis points year over year to 12.7%, in line with our estimate.

The company exited the quarter with a cash and cash equivalents balance of $24.5 million compared with $24.6 million witnessed at the end of the prior quarter. It generated $31.6 million of cash from operating activities, and capex was $3 million. In the quarter, Charles River paid out $2.9 million in dividends.

Currently, Charles River carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshots

Omnicom OMC reported impressive third-quarter 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

OMC’s earnings of $2 per share beat the consensus estimate by 3.1% and increased 9.1% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 2.3% and increased 8.5% year over year.

Equifax EFX reported mixed third-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, while revenues missed the same.

EFX’s adjusted earnings were $1.8 per share, beating the Zacks Consensus Estimate by a slight margin and increasing by 5.1% from the year-ago quarter’s actual. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 9.3% from the year-ago quarter.

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