Why Spirit Realty Capital (SRC) is Poised to Beat Earnings Estimates Again? - Tale of the Tape


Shutterstock photo

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Spirit Realty Capital, Inc. ( SRC ), a firm in the Real Estate Investment Trust (REIT) - Equity Trust 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, SRC 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, SRC expected to earn 18 cents per share, while it actually produced earnings of 25 cents per share, a beat of 38.9%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 7 cents per share, when it actually saw earnings of 8 cents per share instead, representing a 14.3% positive surprise.

Thanks in part to this history, recent estimates have been moving higher for Spirit Realty Capital. In fact, the Earnings ESP for SRC 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 SRC, as the firm currently has a Zacks Earnings ESP of 5.26%, so another beat could be around the corner.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>

SPIRIT REALTY (SRC): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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

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

More from Zacks.com




Equity Research
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com