Will Forest Laboratories (FRX) Crush Estimates at Its Next Earnings Report? - Tale of the Tape
Looking for a stock that might be in a good position to beat earnings at its next report? Consider Forest Laboratories Inc. ( FRX ), a firm in the Medical Drug 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, FRX has beaten estimates by at least 90% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, FRX expected to earn 6 cents per share, while it actually produced earnings of 27 cents per share, representing a significant beat. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 45 cents per share, when it actually saw earnings of 87 cents per share instead, representing a 93.3% positive surprise.
Thanks in part to this history, recent estimates have been moving higher for Forest Laboratories. In fact, the Earnings ESP for FRX 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 FRX, as the firm currently has a Zacks Earnings ESP of 16.46%, so another beat could be around the corner.
This is particularly true when you consider that FRX 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% , so it seems pretty likely that FRX could see another beat at its next report, especially if recent trends are any guide.