Why Cloud Peak Energy (CLD) Could Beat Earnings Estimates Again
Looking for a stock that might be in a good position to beat earnings at its next report? Consider Cloud Peak Energy Inc.CLD , a firm in the Coal 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, CLD has beaten estimates by at least 65% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, CLD was expected to post a loss of 86 cents per share, while it actually posted a loss of 28 cents per share, a beat of 67.4%. Meanwhile, for the most recent quarter, the company looked to post a loss of 13 cents per share, when it actually saw earnings of 24 cents per share instead, representing a positive surprise of over 100%.
Thanks in part to this history, recent estimates have been moving higher for Cloud Peak Energy. In fact, the Earnings ESP for CLD 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 CLD, as the firm currently has a Zacks Earnings ESP of 6.67%, so another beat could be around the corner.
This is particularly true when you consider that CLD 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 CLD 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.