Looking for a stock that might be in a good position to beat earnings at its next report? Consider Altisource Residential Corporation (RESI), a firm in the Real Estate Development industry 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, RESI has beaten estimates by at least 160% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, RESI expected to earn 48 cents per share, while it actually produced earnings of 77 cents per share, a beat of 60.4%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 46 cents per share, when it actually saw earnings of $1.18 per share instead, representing a 156.5% positive surprise.
Thanks in part to this history, recent estimates have been moving higher for Altisource Residential. In fact, the Earnings ESP for RESI 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 RESI, as the firm currently has a Zacks Earnings ESP of 62.69%, so another beat could be around the corner.
This is particularly true when you consider that RESI has a great Zacks Rank #3 (Hold), 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 RESI could see another beat at its next report, especially if recent trends are any guide.
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