GEE Group Inc. (JOB) Exceeds Third Quarter Earnings and Revenue Estimates

gEE Group Inc. (JOB) posted quarterly earnings of $0.03 per share, beating Zacks consensus estimate of $0.01 per share. That compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents a 200% earnings surprise. A quarter ago, this company was expected to post a profit of $0.01 per share when it was actually producing a profit of $0.02, offering a 100% surprise.

In the past four quarters, the company has exceeded consensus EPS estimates twice.

GEE Group Inc., which is part of staffing firm Zacks, reported revenue of $41.11 million for the quarter ended June 2022, beating Zacks’ consensus estimate by 1.89%. That compares to revenues of $38.07 million a year ago. The company has exceeded consensus revenue estimates twice in the past four quarters.

The sustainability of the immediate stock price movement based on recently released numbers and future earnings forecasts will primarily depend on management’s comments on the earnings call.

Shares of GEE Group Inc. are down about 1.9% year-to-date versus a -10.2% drop for the S&P 500.

What’s next for GEE Group Inc.

As GEE Group Inc. has outperformed the market so far this year, the question on investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable metric that can help investors answer it is the company’s earnings outlook. This includes not only current consensus earnings expectations for the upcoming quarter(s), but also how those expectations have changed recently.

Empirical research shows a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Prior to this publication of results, the trend of estimate revisions for GEE Group Inc. Favorable. While the magnitude and direction of estimate revisions may change following the release of the company’s earnings report, the current situation results in a Zacks No. 2 (buy) ranking for the stock. Thus, stocks are expected to outperform the market in the near future. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how the estimates for the next few quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.02 on $43.94 million in revenue for the upcoming quarter and $0.08 on $166.77 million in revenue for the current fiscal year.

Investors should be aware that the outlook for the sector can also have a significant impact on stock performance. In terms of Zacks industry rankings, staffing firms currently sit in the bottom 36% of Zacks 250+ industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.

Another stock in the same sector, Korn/Ferry (KFY), has yet to report results for the quarter ending July 2022.

This staffing firm is expected to post quarterly earnings of $1.53 per share in its next report, representing a year-over-year change of +11.7%. The consensus EPS estimate for the quarter remained unchanged for the past 30 days.

Korn/Ferry revenue is expected to be $700.49 million, up 19.7% from the prior year quarter.

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It’s a little-known chemical company that’s up 65% year-on-year, but still very cheap. With relentless demand, rising earnings estimates for 2022 and $1.5 billion for stock buybacks, retail investors could jump in at any moment.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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