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Why USA Compression Partners (USAC) Could Beat Earnings Estimates Again

Looking for a stock that might be in a good position to beat earnings at its next report? Consider USACompression Partners, LP ( USAC ), a firm in the Oil & Gas Equipment & Services 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, USAC has beaten estimates by at least 60% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, USAC expected to earn 15 cents per share, while it actually produced earnings of 24 cents, a beat of 60%. Meanwhile, for the most recent quarter, the company looked to earn 13 cents per share, when it actually saw an earnings of 49 cents per share instead, representing a substantial positive surprise.

Thanks in part to this history, estimates have moved higher for USA Compression Partners over the last 60 days. In fact, the Earnings ESP for USAC 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 USAC, as the firm currently has a Zacks Earnings ESP of 20%, so another beat could be around the corner.

This is particularly true when you consider that USAC 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 USAC could see another beat at its next report, especially if recent trends are any guide.

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USA COMPRESSION (USAC): 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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