Looking for a stock that might be in a good position to beat earnings at its next report? Consider Sprague Resources LP SRLP, a firm in the Oil Refining & Marketing 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, SRLP has beaten estimates by at least 15% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, SRLP expected to earn $1.74 per share, while it actually produced earnings of $2.06 per share, a beat of 18.4%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of a loss of 15 cents per share, when it actually saw earnings of a loss of 12 cents per share instead, representing a 20% positive surprise.
Thanks in part to this history, recent estimates have been moving higher for Sprague Resources. In fact, the Earnings ESP for SRLP 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 SRLP, as the firm currently has a Zacks Earnings ESP of 100%, so another beat could be around the corner.
This is particularly true when you consider that SRLP 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 SRLP could see another beat at its next report, especially if recent trends are any guide.
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