![]() This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Over the last four quarters, the company has beaten consensus EPS estimates two times.Īn earnings beat or miss may not be the sole basis for a stock moving higher or lower. ![]() So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.įor the last reported quarter, it was expected that Enbridge would post earnings of $0.50 per share when it actually produced earnings of $0.46, delivering a surprise of -8%. So, this combination makes it difficult to conclusively predict that Enbridge will beat the consensus EPS estimate.ĭoes Earnings Surprise History Hold Any Clue?Īnalysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. On the other hand, the stock currently carries a Zacks Rank of #3. This has resulted in an Earnings ESP of 0%. How Have the Numbers Shaped Up for Enbridge?įor Enbridge, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). Please note that a negative Earnings ESP reading is not indicative of an earnings miss. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. This insight is at the core of our proprietary surprise prediction model - the Zacks Earnings ESP (Expected Surprise Prediction). Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.Įstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. The consensus EPS estimate for the quarter has been revised 13.55% lower over the last 30 days to the current level. Revenues are expected to be $8.52 billion, down 11.9% from the year-ago quarter. This oil and natural gas transportation and power transmission company is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of -16.4%. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. On the other hand, if they miss, the stock may move lower. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 7. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The market expects Enbridge (ENB) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2020.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |