Why KNOT Offshore Partners (KNOP) Could Beat Earnings Estimates Again – Tale of the Tape

ZacksLooking for a stock that might be in a good position to beat earnings at its next report? Consider KNOT Offshore Partners LP (KNOP), a firm in the Transportation -Shipping 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, KNOP has beaten estimates by at least 45% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, KNOP expected to earn 32 cents per share, while it actually produced earnings of 47 cents per share, a beat of 46.8%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 36 cents per share, when it actually saw earnings of 84 cents per share instead, representing a significant positive surprise.

Thanks in part to this history, recent estimates have been moving higher for KNOT Offshore Partners In fact, the Earnings ESP for KNOP 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 KNOP, as the firm currently has a Zacks Earnings ESP of 2.78%, so another beat could be around the corner.

This is particularly true when you consider that KNOP 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%, so it seems pretty likely that KNOP could see another beat at its next report, especially if recent trends are any guide.

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