Looking for a stock that might be in a good position to beat earnings at its next report? Consider Yum China Holdings, Inc.YUMC , a firm in the Retail - Restaurants 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, YUMC has beaten estimates by at least 15% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, YUMC expected to post 12 cents per share, while it actually produced 17 cents per share, a beat of 41.7%. Meanwhile, for the most recent quarter, the company looked to deliver 37 cents per share, when it actually saw 44 cents per share instead, representing an 18.9% positive surprise.
Yum China Holdings Inc. Price and Consensus
Yum China Holdings Inc. Price and Consensus | Yum China Holdings Inc. Quote
Thanks in part to this history, recent estimates have been moving higher for Yum China Holdings. In fact, the Earnings ESP for YUMC 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 YUMC, as the firm currently has a Zacks Earnings ESP of 4.17%, so another beat could be around the corner.
This is particularly true when you consider that YUMC has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% , so it seems pretty likely that YUMC could see another beat at its next report, especially if recent trends are any guide.
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Yum China Holdings Inc. (YUMC): 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.
