Looking for a stock that might be in a good position to beat earnings at its next report? Consider Danaos CorporationDAC , a firm in the 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, DAC has beaten estimates by at least 25% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, DAC expected to earn 22 cents per share, while it actually produced earnings of 28 cents, a beat of 27.3%. Meanwhile, for the most recent quarter, the company looked to earn 27 cents per share, when it actually saw an earnings of 35 cents per share instead, representing 29.6% surprise.
Thanks in part to this history, estimates have moved higher for Danaos Corporation over the last 360 days. In fact, the Earnings ESP for DAC 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 DAC, as the firm currently has a Zacks Earnings ESP of 9.38%, so another beat could be around the corner.
This is particularly true when you consider that DAC 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 DAC could see another beat at its next report, especially if recent trends are any guide.