From Nasdaq, Inc.:

The Zacks Business Services sector experienced a strong fourth quarter in 2023 due to an improving global macroeconomic environment, strong demand for services, better supply chains, and digital adoption. However, labor market constraints and contracting economic activity in the manufacturing sector remained challenges. Earnings of S&P 500 members of the business services sector grew 6% year over year on 3.3% revenue growth.

Several companies, including Booz Allen Hamilton Holding Corporation, FLEETCOR Technologies, Inc., Rollins, Inc., and Mastercard Incorporated, are expected to beat estimates in the ongoing reporting cycle.

The demand for business services rose steadily in the quarter, with specific tailwinds such as increased demand for risk mitigation and consulting services, improved expertise in operational efficiency and lower costs, and successful work-from-home models and digital transformation.

Booz Allen, FLEETCOR, Rollins, and Mastercard are all set to report their respective earnings for the quarter, with expected growth in revenues and the bottom line. Booz Allen has an Earnings ESP of +7.65%, FLEETCOR has an Earnings ESP of +0.37%, Rollins has an Earnings ESP of +2.44%, and Mastercard has an Earnings ESP of +0.39%. These companies are poised for strong performances in the quarter.

Overall, the business services sector has displayed substantial growth, with many companies expected to outperform estimates and show strong positive growth in revenues and earnings.



Read more: 4 Service Firms Poised to Beat Estimates This Earnings Season