Author: Zacks Equity Research

CHE – Chemed (CHE) Q1 Earnings Beat Estimates, Gross Margin Up

Written by Zacks Equity Research on . Posted in CHE, Stock Report.

Chemed Corporation (CHE – Free Report) reported first-quarter 2021 adjusted earnings per share (EPS) of $4.44, up 20.7% year over year. The figure surpassed the Zacks Consensus Estimate by 5.7%.

The company’s GAAP EPS was $4.01, highlighting an 18.6% improvement year over year.

Revenues in Detail

Revenues in the reported quarter improved 2.2% year over year to $527.4 million. The metric surpassed the Zacks Consensus Estimate by 2%.

Segmental Details   

Chemed operates through two wholly-owned subsidiaries — VITAS (a major provider of end-of-life care) and Roto-Rooter (a leading commercial and residential plumbing plus drain cleaning service provider).

In the first quarter, net revenues at VITAS totaled $316 million, down 6.5% year over year. This revenue decline was primarily led by a 7.1% decline in days-of-care, a geographically weighted average Medicare reimbursement rate increase (including the suspension of sequestration on May 1, 2020) of approximately 2.8% and an acuity mix shift that reduced the blended average Medicare rate by approximately 50 basis points (bps).

Roto-Rooter reported sales of $212 million in the first quarter, up 18.9% year over year.

Total Roto-Rooter branch commercial revenues declined 8.4% on a 5.8% fall in drain cleaning revenues, 5% decline in commercial plumbing, 19.5% decrease in excavation revenues and an 8.8% increase in commercial water restoration revenues.

Chemed Corporation Price, Consensus and EPS Surprise

Total Roto-Rooter branch residential revenues registered growth of 32% on a 29.5% rise in residential drain cleaning revenues, 34.9% improvement in plumbing, 35.8% increase in excavation and 28.7% growth in residential water restoration.

Margin in Detail

Gross profit rose 13.9% year over year to $186.9 million in the first quarter of 2021. Gross margin expanded 363 bps year over year to 35.4%, while the cost of products and services declined 3.2% in the first quarter of 2021.

Adjusted operating profit increased 1.9% from the year-ago period to $95.3 million. Adjusted operating margin contracted 5 bps to 18.1% with a 29.8% rise in adjusted operating expenses.

Liquidity & Capital Structure

Chemed exited the first quarter of 2021 with cash and cash equivalents of $210 million, marking an improvement from $162.7 million at the end of the last reported quarter. Similar to fourth-quarter 2020, there was no long-term debt at the end of first-quarter 2021.

First-quarter net cash provided by operating activities was $106.7 million compared with $89.3 million a year ago.

In the first quarter, Chemed’s management repurchased stocks for $44.8 million. As of Mar 31, 2021, there was approximately $134 million of share repurchase remaining under the existing plan.

Guidance 2021

Management is likely to provide the updated 2021 earnings guidance in July along with the second-quarter earnings release.

Our Take

Chemed ended the first quarter of 2021 with better-than-expected earnings and revenues. The figures improved year over year. Solid revenue growth across Roto-Rooter is encouraging, given the challenging business environment. Expansion of gross margins buoys optimism. Chemed exited the first quarter of 2021 will no long-term debt, which is again a positive.

On the flip side, a decline in VITAS revenues during the reported quarter was discouraging. Rising operating expenses and contraction of operating margin are concerns. Reimbursement hampering top-line growth, business seasonality and a tough competitive landscape are other headwinds.

Zacks Rank & Key Picks

Currently, Chemed carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space include Semler Scientific Inc. (SMLR – Free Report) , Owens & Minor, Inc. (OMI – Free Report) and DENTSPLY SIRONA Inc. (XRAY – Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Semler is expected to release results on May 3. The Zacks Consensus Estimate for the company’s first-quarter 2021 adjusted EPS is currently pegged at 48 cents. The consensus mark for first-quarter revenues stands at $11.9 million.

Owens & Minor and is scheduled to release results on May 5. The Zacks Consensus Estimate for its first-quarter 2021 adjusted EPS is currently pegged at 97 cents. The consensus estimate for first-quarter revenues stands at $2.29 billion.

DENTSPLY SIRONA is slated to release results on May 6. The Zacks Consensus Estimate for first-quarter 2021 adjusted EPS is currently pegged at 55 cents. The consensus estimate for revenues stands at $929.3 million.

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MAS – Masco (MAS) Q1 Earnings & Sales Top Estimates, Stock Up

Written by Zacks Equity Research on . Posted in MAS, Stock Report.

Masco Corporation (MAS – Free Report) reported impressive results for first-quarter 2021. Both earnings and revenues surpassed the Zacks Consensus Estimate as well as improved year over year. Strong Decorative Architectural Products and North American Plumbing segments helped it deliver better-than-expected results.

The company’s shares jumped 2.3% in the pre-market trading session on Apr 28.

“Our markets remain strong, and we continue to demonstrate our ability to execute extremely well in this dynamic environment. We have taken actions and developed further plans to offset the raw material and logistics inflation that we are experiencing.

“While we anticipate these challenges will continue for the next few quarters, we believe we are well prepared and will continue to adjust to deliver value for our customers and our shareholders.” said Masco President and CEO, Keith Allman.

Inside the Headlines

Masco reported adjusted earnings of 89 cents per share, which topped the consensus mark of 66 cents by 34.9%. Its bottom line grew an impressive 89.3% from year-ago figure of 46 cents per share.

Net sales of $1,970 million topped the consensus estimate of $1,827.3 million by 7.8%. On a year-over-year basis, the top line increased 24.6%. Notably, net sales jumped 22% year over year in local currency. In local currency, sales in the North American region increased 21% from prior-year figure and 27% internationally.

Segmental Analysis

Plumbing Products: Sales in the segment rose 31% year over year to $1,249 million. In local currency, the segment’s sales (excluding acquisitions) increased 22% year over year. Adjusted operating margin expanded 370 basis points (bps) year over year to 20.3%. Adjusted EBITDA increased 55.9% year over year to $279 million.

Decorative Architectural Products: The segment reported sales of $721 million, up 15% from the prior-year period. Adjusted operating margin expanded 440 bps to 19.7%. Adjusted EBITDA also improved 42.1% from the prior-year period to $152 million.

Margins Performance

Adjusted gross margin came in at 35.6%, which expanded 80 bps from the prior year. Selling, general and administrative expenses — as a percentage of net sales — were down 340 bps from the year-ago figure.

Adjusted operating margin expanded 420 bps on a year-over-year basis to 18.6%. Adjusted EBITDA also increased 56.7% year over year to $409 million.

Financials

At quarter-end, the company had cash and cash investments of $838 million compared with $1,326 million recorded at 2020-end. Long-term debt was $2.96 billion, up from $2.79 billion at 2020-end. Net cash for operating activities was $89 million for the first three months of 2021 compared with $92 million in the comparable year-ago period.

It repurchased 5.5 million shares for approximately $303 million during the quarter.

Lifted 2021 Projections

The company expects earnings for 2021 in the range of $1.52-$1.72 per share, as reported. Adjusted earnings are now projected within $3.50-$3.70 per share, up from prior expectation of $3.25-$3.45. In 2020, adjusted earnings were $3.12 per share.

Zacks Rank

Masco — which share space with Armstrong World Industries, Inc. (AWI – Free Report) , Owens Corning (OC – Free Report) and United Rentals, Inc. (URI – Free Report) in the Zacks Building Products – Miscellaneous industry — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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LEG – Will Solid Residential Market Aid Leggett (LEG) Q1 Earnings?

Written by Zacks Equity Research on . Posted in LEG, Stock Report.

Leggett & Platt, Incorporated (LEG – Free Report) is slated to release first-quarter 2021 results on May 3, after market close.

In the last reported quarter, the company came up with better-than-expected earnings and net sales. Its adjusted earnings of 76 cents per share topped the Zacks Consensus Estimate by 8.6% and rose 11.8% from the year-ago quarter. The company’s net sales also topped the consensus mark by 2.9% and increased 3.2% from the prior-year level.

Notably, its earnings surpassed the consensus mark in each of the trailing seven quarters.

Trend in Estimate Revision

The Zacks Consensus Estimate for earnings for the quarter to be reported has moved upward to 41 cents per share from 40 cents over the past 30 days. The estimated figure indicates no change from the year-ago earnings. The consensus mark for revenues is $1.14 billion, suggesting 9% year-over-year growth.

Factors to Note

Leggett’s business is expected to have registered modest earnings and trade sales growth in first-quarter 2021. On a further encouraging note, improved demand in residential end markets is expected to have aided its top line. Also, encouraging bedding industry prospects — driven by a shift in consumer spending toward home products and favorable housing environment — might have added to the positives.

However, soft Aerospace industry and currency headwinds are likely to weigh on the results. Also, persistent supply chain constraints and inflation in commodity costs are likely to have somewhat put pressure on the bottom line.

Nonetheless, a rise in raw material-related selling price and focus on containment of fixed costs are expected to have somewhat offset the negatives.

The consensus estimate for Bedding Products’ trade sales (accounting for 47.6% of total 2020 revenues) is pegged at $551 million, indicating an increase of 12.3% from $490.6 million in first-quarter 2020.

For Specialized Products (comprising 20.8% of total revenues), the consensus estimate for the segment’s trade sales is pegged at $249 million, indicating an improvement of 6.2% year over year.

The consensus estimate for trade sales from the Furniture, Flooring & Textile Products segment (comprising 31.5% of total revenues) is pegged at $340 million, indicating 6.1% growth from the prior-year quarter.

Moreover, its systematic inorganic drive — which has been strongly contributing to top-line growth — should have given a meaningful boost to total sales.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Leggett this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -0.81%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Leggett currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With Favorable Combination

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat this time around.

Wyndham Hotels & Resorts, Inc. (WH – Free Report) has an Earnings ESP of +2.82% and a Zacks Rank #1.

Fox Corporation (FOXA – Free Report) has an Earnings ESP of +13.64% and a Zacks Rank of #1.

DISH Network Corporation (DISH – Free Report) has an Earnings ESP of +3.64% and a Zacks Rank #2.

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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

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ALRM – Why Alarm.com (ALRM) Could Beat Earnings Estimates Again

Written by Zacks Equity Research on . Posted in ALRM, Stock Report.

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Alarm.com Holdings (ALRM – Free Report) . This company, which is in the Zacks Security and Safety Services industry, shows potential for another earnings beat.

When looking at the last two reports, this security service company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 62.37%, on average, in the last two quarters.

For the last reported quarter, Alarm.com came out with earnings of $0.45 per share versus the Zacks Consensus Estimate of $0.27 per share, representing a surprise of 66.67%. For the previous quarter, the company was expected to post earnings of $0.31 per share and it actually produced earnings of $0.49 per share, delivering a surprise of 58.06%.

Price and EPS Surprise

Thanks in part to this history, there has been a favorable change in earnings estimates for Alarm.com lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Alarm.com currently has an Earnings ESP of +3.63%, which suggests that analysts have recently become bullish on the company’s earnings prospects. This positive Earnings ESP when combined with the stock’s Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company’s next earnings report to be released on May 4, 2021.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock’s earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it’s really important to check a company’s Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they’ve reported.

ANSS – Why Ansys (ANSS) Could Beat Earnings Estimates Again

Written by Zacks Equity Research on . Posted in ANSS, Stock Report.

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Ansys (ANSS – Free Report) . This company, which is in the Zacks Computer – Software industry, shows potential for another earnings beat.

When looking at the last two reports, this maker of engineering-simulation software has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 12.93%, on average, in the last two quarters.

For the last reported quarter, Ansys came out with earnings of $2.96 per share versus the Zacks Consensus Estimate of $2.51 per share, representing a surprise of 17.93%. For the previous quarter, the company was expected to post earnings of $1.26 per share and it actually produced earnings of $1.36 per share, delivering a surprise of 7.94%.

Price and EPS Surprise

Thanks in part to this history, there has been a favorable change in earnings estimates for Ansys lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Ansys currently has an Earnings ESP of +7.42%, which suggests that analysts have recently become bullish on the company’s earnings prospects. This positive Earnings ESP when combined with the stock’s Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company’s next earnings report to be released on May 5, 2021.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock’s earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it’s really important to check a company’s Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they’ve reported.

CTXS – Why the Earnings Surprise Streak Could Continue for Citrix (CTXS)

Written by Zacks Equity Research on . Posted in CTXS, Stock Report.

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Citrix Systems (CTXS – Free Report) . This company, which is in the Zacks Computer – Software industry, shows potential for another earnings beat.

When looking at the last two reports, this cloud computing company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 11.40%, on average, in the last two quarters.

For the most recent quarter, Citrix was expected to post earnings of $1.32 per share, but it reported $1.46 per share instead, representing a surprise of 10.61%. For the previous quarter, the consensus estimate was $1.23 per share, while it actually produced $1.38 per share, a surprise of 12.20%.

Price and EPS Surprise

For Citrix, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock’s positive Zacks Earnings ESP (Expected Surprise Prediction), it’s a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Citrix currently has an Earnings ESP of +0.15%, which suggests that analysts have recently become bullish on the company’s earnings prospects. This positive Earnings ESP when combined with the stock’s Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company’s next earnings report to be released on April 29, 2021.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock’s earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it’s really important to check a company’s Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they’ve reported.

CWH – Why the Earnings Surprise Streak Could Continue for Camping World (CWH)

Written by Zacks Equity Research on . Posted in CWH, Stock Report.

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Camping World (CWH – Free Report) . This company, which is in the Zacks Leisure and Recreation Services industry, shows potential for another earnings beat.

When looking at the last two reports, this recreational vehicle retailer and services provider has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 76.70%, on average, in the last two quarters.

For the most recent quarter, Camping World was expected to post earnings of $0.24 per share, but it reported $0.48 per share instead, representing a surprise of 100%. For the previous quarter, the consensus estimate was $1.03 per share, while it actually produced $1.58 per share, a surprise of 53.40%.

Price and EPS Surprise

For Camping World, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock’s positive Zacks Earnings ESP (Expected Surprise Prediction), it’s a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Camping World currently has an Earnings ESP of +45.76%, which suggests that analysts have recently become bullish on the company’s earnings prospects. This positive Earnings ESP when combined with the stock’s Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company’s next earnings report to be released on May 4, 2021.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock’s earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it’s really important to check a company’s Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they’ve reported.

EXP – Why Eagle Materials (EXP) is Poised to Beat Earnings Estimates Again

Written by Zacks Equity Research on . Posted in EXP, Stock Report.

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Eagle Materials (EXP – Free Report) , which belongs to the Zacks Building Products – Concrete and Aggregates industry, could be a great candidate to consider.

When looking at the last two reports, this maker of gypsum wallboard and cement has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 10.70%, on average, in the last two quarters.

For the most recent quarter, Eagle Materials was expected to post earnings of $1.72 per share, but it reported $1.94 per share instead, representing a surprise of 12.79%. For the previous quarter, the consensus estimate was $1.86 per share, while it actually produced $2.02 per share, a surprise of 8.60%.

Price and EPS Surprise

Thanks in part to this history, there has been a favorable change in earnings estimates for Eagle Materials lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Eagle Materials has an Earnings ESP of +8.50% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner.

Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it’s really important to check a company’s Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they’ve reported.

DISH – Will Dish (DISH) Beat Estimates Again in Its Next Earnings Report?

Written by Zacks Equity Research on . Posted in DISH, Stock Report.

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Dish Network (DISH – Free Report) . This company, which is in the Zacks Cable Television industry, shows potential for another earnings beat.

This satellite television provider has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 46.85%.

For the most recent quarter, Dish was expected to post earnings of $0.75 per share, but it reported $1.24 per share instead, representing a surprise of 65.33%. For the previous quarter, the consensus estimate was $0.67 per share, while it actually produced $0.86 per share, a surprise of 28.36%.

Price and EPS Surprise

Thanks in part to this history, there has been a favorable change in earnings estimates for Dish lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Dish has an Earnings ESP of +3.64% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock’s Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company’s next earnings report is expected to be released on April 29, 2021.

Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it’s really important to check a company’s Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they’ve reported.

LCII – Will LCI (LCII) Beat Estimates Again in Its Next Earnings Report?

Written by Zacks Equity Research on . Posted in LCII, Stock Report.

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? LCI (LCII – Free Report) , which belongs to the Zacks Automotive – Original Equipment industry, could be a great candidate to consider.

This recreational vehicle parts supplier has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 7.68%.

For the last reported quarter, LCI came out with earnings of $1.92 per share versus the Zacks Consensus Estimate of $1.84 per share, representing a surprise of 4.35%. For the previous quarter, the company was expected to post earnings of $2.45 per share and it actually produced earnings of $2.72 per share, delivering a surprise of 11.02%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for LCI. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

LCI currently has an Earnings ESP of +2.21%, which suggests that analysts have recently become bullish on the company’s earnings prospects. This positive Earnings ESP when combined with the stock’s Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company’s next earnings report to be released on May 4, 2021.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock’s earnings miss.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it’s really important to check a company’s Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they’ve reported.

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