However, the model's predictive power is significant for positive ESP readings only.Ī positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. 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 an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.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 remained unchanged over the last 30 days. Revenues are expected to be $122.85 million, down 6% from the year-ago quarter. This maker of medical device for newborn care is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of -14.3%. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability 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 July 25. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. Investors can indirectly invest in these stocks by investing in IHI, which also holds stocks like Stryker (SYK) and Waters (WAT), which gave returns of 0.78% and -0.27%, respectively.Wall Street expects a year-over-year decline in earnings on lower revenues when Natus Medical reports results for the quarter ended June 2019. BABY has a weight of 0.45% in IHI’s portfolio. With its current price, the stock’s trailing-12-month price-to-equity was at 33.7x, and the price-to-book value stood at 3.5x. The stock went up on good trading volumes of ~183,000 shares as against the five-day average trading volume of ~205,000 shares per day. The stock is trading below its 20-day, 50-day, and 100-day moving averages. Natus (BABY) gained 1.9% and closed at $39.90. MASI has a weight of 0.59% in IHI’s portfolio. MASI’s RSI (relative strength index) stood at 50, indicating that the stock is neither overbought nor oversold. MASI closed at $40.14 and was trading above its 100-day moving average. The stock has been on the upward trend since Masimo PVI was evaluated for its ability to help clinicians assess fluid responsiveness.
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