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Why the Earnings Streak Will Continue for Outerwall (OUTR) - Tale of the Tape

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Outerwall Inc. ( OUTR ), a firm in the specialty retail space 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, OUTR has beaten estimates at least 35.0% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, OUTR expected to earn $1.23 per share, while it actually produced earnings of $1.68 per share, a beat of 36.6%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 92 cents per share, when it actually saw earnings of $1.27 per share instead, representing a positive surprise of 38.0%.

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 OUTR as the firm currently has a Zacks Earnings ESP of 0.69%, so another beat could be around the corner.

This is particularly true when you consider that OUTR has a great Zacks Rank #1 (Strong 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 OUTR could see another beat at its next report, especially if recent trends are any guide.

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OUTERWALL INC (OUTR): Free Stock Analysis Report

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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.

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