This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, TPRE has beaten estimates by at least 40% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, TPRE expected to earn 42 per share, while it actually produced earnings of 60 cents per share, a beat of 42.9%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 62 cents per share, when it actually saw earnings of 87 cents per share instead, representing a 40.3% positive surprise.
Thanks in part to this history, recent estimates have been moving higher for Third Point Reinsurance. In fact, the Earnings ESP for TPRE is positive, which is a great sign of a coming beat.
After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for TPRE, as the firm currently has a Zacks Earnings ESP of 2.78%, so another beat could be around the corner.
This is particularly true when you consider that TPRE has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. And when you add this solid Zacks Rank to a positive
Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that TPRE could see another beat at its next report, especially if recent trends are any guide.
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