Looking for a stock that might be in a good position to beat earnings at its next report? Consider W&T Offshore Inc. WTI, a firm in the Oil Exploration and Production 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, WTI has beaten estimates by at least 10% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, WTI expected to post a loss of 76 cents per share, while it actually reported a loss of 54 cents per share, a beat of 29%. Meanwhile, for the most recent quarter, the company looked to report loss of 94 cents per share, when it actually saw a loss of 82 cents per share instead, representing a 12.8% positive surprise.
Thanks in part to this history, recent estimates have been moving higher for W&T Offshore. In fact, the Earnings ESP for WTI 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 WTI, as the firm currently has a Zacks Earnings ESP of 26.03%, so another beat could be around the corner.
This is particularly true when you consider that WTI 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 WTI could see another beat at its next report, especially if recent trends are any guide.
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