Why Axcelis could beat earnings estimates again
Are you looking for a stock that can continue its streak of earnings beats in its next report? Axcelis Technologies (ACLS) is a Zacks Electronics Manufacturing Machinery company.
This semiconductor services company has been consistently exceeding earnings estimates in the past two reports. In the last two quarters, estimates have been beaten by 17.62%.
Axcelis reported earnings of $1.21 per stock for the most recent quarter, which was higher than the Zacks Consensus Estimated of $1.13 per shares. This is a surprise by 7.08%. The previous quarter was expected to see earnings of $1.03 per shares. However, earnings actually came in at $1.32 pershare, which is an unexpected 28.16%.
Surprise Price and EPS
Axcelis estimates have trended higher because of this earnings surprise history. The stock’s positive Zacks earnings ESP (Expected surprise prediction) is a great indicator for future earnings beats, especially when it’s combined with its solid Zacks rank.
Our research shows that stocks that have a positive Earnings ESP, a Zacks Rank (3 (Hold), or better) produce a positive surprise about 70% of times. If you have 10 stocks with this combination the number of stocks that exceed the consensus estimate could rise to seven.
The Zacks Earnings ESP compared the Most Accurate Estimate and the Zacks Consensus Estimate of the quarter. The Most Accurate Estimate, which is a version Zacks Consensus whose definition includes change, is the Zacks Consensus’ most accurate estimate. This is because analysts who revise their estimates before earnings releases have the most current information. It could be that this information will prove to be more accurate than what others contributed to the consensus.
Axcelis’ Earnings ESP is currently at +16%. This suggests that analysts have become bullish about the stock’s near-term earnings potential. This positive EarningsESP combined with the stock’s Zacks rank #1 (Strong Buy) shows that there may be another win. The company’s next earnings report will be published on February 6, 2023.
Investors should be aware that a negative Earnings ESP reading does not indicate an earnings miss. However, a negative value reduces the predictive power of this metric.
While many companies beat the consensus EPS estimate, that does not necessarily mean their stock prices will rise. However, stocks can hold their ground even when they fall short of the consensus estimate.
To increase your chances of success, you should check a company’s Earnings ESP before each quarterly release. Our Earnings ESP Filter will help you find the best stocks to purchase or sell before they report.
Get the most recent Zacks Investment Research recommendations. You can now download 7 Best Stocks to Watch in the Next 30 days. Click to get this free report
Axcelis Technologies, Inc. (ACLS) : Free Stock Analysis Report