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Looking for a stock that might be in a good position to beat earnings at its next report? Consider The Brink's Company (NYSE:BCO) , a firm in the Outsourcing 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, BCO has beaten estimates by at least 10% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, BCO expected to post 49 cents per share, while it actually produced 64 cents per share, a beat of 30.6%. Meanwhile, for the most recent quarter, the company looked to deliver 75 cents per share, when it actually saw earnings of 83 cents per share instead, representing a 10.7% positive surprise.
Thanks in part to this history, recent estimates have been moving higher for The Brink's Company. In fact, the Earnings ESP for BCO 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 BCO, as the firm currently has a Zacks Earnings ESP of +2.94, so another beat could be around the corner.
This is particularly true when you consider that BCO 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% of the time, so it seems pretty likely that BCO could see another beat at its next report, especially if recent trends are any guide.
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