Looking for a stock that might be in a good position to beat earnings at its next report? Consider Agnico Eagle Mines Limited (AEM), a firm in the gold mining 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, AEM has beaten estimates at least 20.0% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, AEM expected to earn 21 cents per share, while it actually produced earnings of 26 cents per share, a beat of 23.8%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 25 cents per share, when it actually saw earnings of 60 cents per share instead, representing a significant positive surprise.
Thanks in part to this history, recent estimates have been moving higher for Agnico Eagle Mines. In fact, the Earnings ESP for AEM 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 AEM, as the firm currently has a Zacks Earnings ESP of 3.85%, so another beat could be around the corner.
This is particularly true when you consider that AEM 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 AEM could see another beat at its next report, especially if recent trends are any guide.
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