Why Paragon Shipping (PRGN) is Poised to Beat Earnings Estimates - 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 Paragon Shipping Inc. ( PRGN ), 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, PRGN has beaten estimates by at least 85% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, PRGN expected to incur a loss of 28 cents per share, while it actually reported a loss of 2 cents per share, a beat of 92.9%. Meanwhile, for the most recent quarter, the company looked to incur a loss of 39 cents a share, when it actually saw a loss of 4 cents per share instead, representing an 89.7% positive surprise.

Thanks in part to this history, recent estimates have been moving higher for Paragon Shipping. In fact, the Earnings ESP for PRGN 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 PRGN, as the firm currently has a Zacks Earnings ESP of 25.00%, so another beat could be around the corner.

This is particularly true when you consider that PRGN 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 PRGN 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

Referenced Stocks: PRGN

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