This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, IRWD 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, IRWD expected a loss of 71 cents per share, while it actually produced a loss of 57 cents per share, a beat of 19.7%. Meanwhile, for the most recent quarter, the company looked to report a loss of 58 cents per share, when it actually saw a loss of 51 cents per share instead, representing a 12.1% positive surprise.
Thanks in part to this history, recent estimates have been moving higher for Ironwood Pharmaceuticals. In fact, the Earnings ESP for IRWD 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 IRWD, as the firm currently has a Zacks Earnings ESP of 0.41%, so another beat could be around the corner.
This is particularly true when you consider that IRWD 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 IRWD could see another beat at its next report, especially if recent trends are any guide.
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