Why the Earnings Streak Will Continue for EV Energy Partners (EVEP) – Tale of the Tape

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, EVEP has beaten estimates by at least 35% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, EVEP expected to earn 25 cents per unit, while it actually produced earnings of 34 cents per unit, a beat of 36%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 25 cents per unit, when it actually saw earnings of 49 cents per unit instead, representing a 96% positive surprise.

Thanks in part to this history, recent estimates have been moving higher for EV Energy Partners. In fact, the Earnings ESP for EVEP 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 EVEP, as the firm currently has a Zacks Earnings ESP of 25.93%, so another beat could be around the corner.

This is particularly true when you consider that EVEP 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 EVEP could see another beat at its next report, especially if recent trends are any guide.

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