Looking for a stock that might be in a good position to beat earnings at its next report? Consider Aquinox Pharmaceuticals Inc. AQXP, a firm in the Med-Generic Drug 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, AQXP 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, AQXP expected to deliver a loss 83 cents per share, while it actually saw a loss of 60 cents, a beat of 27.7%. Meanwhile, for the most recent quarter, the company looked to deliver a loss of 49 cents per share, when it actually saw a loss of 44 cents per share instead, representing 10.2% positive surprise.
Thanks in part to this history, recent estimates have moved higher for Aquinox Pharmaceuticals over the past 30 days. In fact, the Earnings ESP for AQXP 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 AQXP, as the firm currently has a Zacks Earnings ESP of 43.9%, so another beat could be around the corner.
This is particularly true when you consider that AQXP 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 AQXP could see another beat at its next report, especially if recent trends are any guide.
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