Looking for a stock that might be in a good position to beat earnings at its next report? Consider Cincinnati Bell Inc. (CBB), a firm in the Diversified Communication Services space, 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, CBB has beaten estimates by at least 100% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, CBB was expected to incur a loss of 6 cents per share, while it actually produced a breakeven bottom line, leading to a beat of 100%. Meanwhile, for the most recent quarter, the company looked to incur a loss of 6 cents per share, when it actually saw earnings of 1 cent per share instead, representing a positive surprise of over 100%.
Thanks in part to this history, recent estimates have been moving higher for Cincinnati Bell. In fact, the Earnings ESP for CBB 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 CBB, as the firm currently has a Zacks Earnings ESP of 166.67%, so another beat could be around the corner.
This is particularly true when you consider that CBB 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 CBB could see another beat at its next report, especially if recent trends are any guide.
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