Can The Spectranetics (SPNC) Keep the Earnings Streak Alive This Quarter? – 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, SPNC has beaten estimates by at least 25% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, SPNC expected to earn a loss of 8 cents per share, while it actually produced earnings of a loss of 6 cents per share, a beat of 25%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of a loss of 8 cents per share, when it actually saw earnings of a loss of 5 cents per share instead, representing a 37.5% positive surprise.

Thanks in part to this history, recent estimates have been moving higher for The Spectranetics. In fact, the Earnings ESP for SPNC 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 SPNC, as the firm currently has a Zacks Earnings ESP of 20%, so another beat could be around the corner.

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

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