Looking for a stock that might be in a good position to beat earnings at its next report? Consider Ardmore Shipping CorporationASC , 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, ASC 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, ASC expected to earn 15 cents per share, while it actually produced earnings of 20 cents, a beat of 33.3%. Meanwhile, for the most recent quarter, the company looked to earn 27 cents per share, when it actually saw an earnings of 30 cents per share instead, representing 11.1% surprise.
Thanks in part to this history, current quarter estimates have moved higher for Ardmore Shipping over the last 30 days. In fact, the Earnings ESP for ASC 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 ASC, as the firm currently has a Zacks Earnings ESP of 13.51%, so another beat could be around the corner.
This is particularly true when you consider that ASC 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 ASC could see another beat at its next report, especially if recent trends are any guide.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.