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Why Allied World (AWH) Could Beat Earnings Estimates Again? - Tale of the Tape

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Allied World Assurance Company Holdings, AG ( AWH ), a firm in the Property & Casualty Insurance 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, AWH has beaten estimates by at least 35% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, AWH expected to earn $1.74 per share, while it actually produced earnings of $2.94 per share, a beat of 68.9%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of $2.13 per share, when it actually saw earnings of $2.93 per share instead, representing a 37.6% positive surprise.

Thanks in part to this history, recent estimates have been moving higher for Allied World. In fact, the Earnings ESP for AWH 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 AWH, as the firm currently has a Zacks Earnings ESP of 33.48%, so another beat could be around the corner.

This is particularly true when you consider that AWH has a great Zacks Rank #1 (Strong Buy) which can be a harbinger of out performance 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 AWH 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 Nasdaq, Inc.


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