Looking for a stock that might be in a good position to beat earnings at its next report? Consider Quanex Building Products Corporation (NX), a firm in the Building & Construction – Miscellaneous industry, which could be a great candidate for another beat.
This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, NX 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, NX expected to incur a loss of 15 cents per share, while it actually produced a loss of 9 cents per share, representing a 40.0% positive surprise. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 1 cent per share, when it actually saw earnings of 7 cents per share instead.
Thanks in part to this history, recent estimates have been moving higher for Quanex Building Products. In fact, the Earnings ESP for NX 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 NX, as the firm currently has a Zacks Earnings ESP of 3.57%, so another beat could be around the corner.
This is particularly true when you consider that NX has a great Zacks Rank #1 (Strong 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 NX could see another beat at its next report, especially if recent trends are any guide.
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