Exxon (XOM), could beat earnings estimates again
You’ve been looking for a stock to help maintain its earnings-beat streak and keep it going in the next report. Exxon Mobil, which is part of the Zacks Oil and Gas Integrated – International sector, might be worth looking at.
The oil and natural gas company has a history of exceeding earnings estimates, particularly when compared to the two previous reports. For the past two quarters, the company has a surprise rate of 11.82%.
Exxon expected to post earnings at $3.88 per share for its most recent quarter. However, the company reported $4.45 per shares instead. This is a surprise by 14.69%. The consensus estimate for the previous quarter was $3.80 per stock, but it actually produced $4.14 per shares, an 8.95% surprise.
Price and EPS Surprise
Exxon’s earnings surprise history has led to estimates trending higher. The stock’s positive Zacks earnings ESP (Expected surprise prediction) is a great indicator for future earnings beats, especially when it is combined with its solid Zacks rank.
Our research has shown that stocks with a positive Earnings ESP combined with a Zacks Rank 3 (Hold) or higher produce a positive surprise almost 70% of the times. This means that if 10 stocks have this combination, there could be seven stocks that surpass the consensus estimate.
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.
Exxon currently has an Earnings ESP value of +2.78%. This suggests that analysts are becoming bullish on the company’s near-term potential earnings. This positive Earnings ESP combined with the stock’s Zacks Rank 3 (Hold) shows that there may be another beat.
Investors should be aware that if the Earnings ESP is negative, this will decrease the predictive power of the metric. However, a negative Earnings ESP value does not necessarily indicate that a stock is missing its earnings.
While many companies beat the consensus EPS estimate, that does not necessarily mean their stock prices will rise. Some stocks might hold their ground, even if they miss the consensus estimate.
It is important to verify a company’s Earnings ESP prior to its quarterly release. This will increase your chances of success. To find the best stocks for buying or selling, use our Earnings ESP filter.
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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report