Why Delek Logistics Partners (DKL) Could Beat Earnings Estimates Again – Tale of the Tape

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, DKL has beaten estimates by at least 35.0% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, DKL expected to post 43 cents per share, while its earnings came in at 59 cents per share, a significant beat. Meanwhile, for the most recent quarter, the company looked to deliver earnings per share of 61 cents, when it actually saw 87 cents per share instead, representing a 42.6% positive surprise.

Thanks in part to this history, estimates have been moving higher for Delek Logistics Partners. In fact, the Earnings ESP for DKL 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 DKL, as the firm currently has a Zacks Earnings ESP of 2.74 %, so another beat could be around the corner.

This is particularly true when you consider that DKL 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 DKL could see another beat at its next report, especially if recent trends are any guide.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>