Will the Rubicon Project (RUBI) 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 the Rubicon Project, Inc. ( RUBI ), a firm in the Internet Software 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, RUBI has beaten estimates by at least 55% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, RUBI was expected to incur a loss of 18 cents per share, while it actually produced earnings of 6 cents per share, a move of over 100%. Meanwhile, for the most recent quarter, the company looked to incur a loss of 31 cents per share, when it actually incurred a loss of 13 cents per share instead, representing a beat of 58.1%.
Thanks in part to this history, recent estimates have been moving higher for the Rubicon Project. In fact, the Earnings ESP for RUBI 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 RUBI, as the firm currently has a Zacks Earnings ESP of 2.78%, so another beat could be around the corner.
This is particularly true when you consider that RUBI 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 RUBI could see another beat at its next report, especially if recent trends are any guide.