Why the Earnings Streak Will Continue for Hyperion Therapeutics (HPTX) - Tale of the Tape

By
A A A

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Hyperion Therapeutics, Inc. ( HPTX ), a firm in the biopharmaceutical 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, HPTX has beaten estimates by at least 225% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, HPTX expected to report a loss of 8 cents per share, while it actually produced earnings of 10 cents per share, a significant beat. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 3 cents per share, when it actually saw earnings of 13 cents per share instead, representing a 333.3% positive surprise.

Thanks in part to this history, recent estimates have been moving higher for Hyperion Therapeutics. In fact, the Earnings ESP for HPTX 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 HPTX, as the firm currently has a Zacks Earnings ESP of 200.00%, so another beat could be around the corner.

This is particularly true when you consider that HPTX 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 HPTX 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 >>



HYPERION THERAP (HPTX): 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 The NASDAQ OMX Group, Inc.



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

Referenced Stocks: HPTX

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

My Career No Longer Exists
My Career No Longer Exists          

Stocks

Referenced

100%

Most Active by Volume

105,767,201
  • $46.30 ▲ 19.98%
80,574,036
  • $15.58 ▲ 1.56%
66,424,299
  • $3.46 ▲ 1.76%
42,459,394
  • $3.82 ▲ 0.79%
36,704,800
  • $13.98 ▼ 14.02%
35,625,113
  • $74.677 ▲ 1.31%
33,067,430
  • $29.26 ▼ 0.71%
32,374,580
  • $98.15 ▼ 0.23%
As of 7/30/2014, 04:04 PM