Why Fidelity National (FNF) Could Beat Earnings Estimates Again - Tale of the Tape

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Looking for a stock that might be in a good position to beat earnings at its next report? Consider Fidelity National Financial, Inc. ( FNF ), a firm in the Insurance Property & Casualty industry, 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, FNF has beaten estimates by at least 15% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, FNF expected to earn 36 cents per share, while it actually produced earnings of 43 cents per share, a beat of 19.4%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 21 cents per share, when it actually saw earnings of 26 cents per share instead, representing a 23.8% positive surprise.

Thanks in part to this history, recent estimates have been moving higher for Fidelity National. In fact, the Earnings ESP for FNF 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 FNF, as the firm currently has a Zacks Earnings ESP of 5.56%, so another beat could be around the corner.

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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Earnings , Investing Ideas , Stocks

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