Will Ares Management, (ARES), beat estimates again in its next Earnings Report
You’ve been looking for a stock to continue its streak of beating earnings in the upcoming report. Ares Management (ARES) is a Zacks Financial – Investment Management company.
The last two reports show that this private equity firm has been consistently exceeding earnings estimates. In the past two quarters, the company has exceeded estimates by an average of 4.23%.
Ares Management reported earnings of $0.75 per stock for the most recent quarter, which was higher than the Zacks Consensus Estimated of $0.73 per share. This is a surprise by 2.74%. The company had expected earnings of $0.70 per stock, but it actually earned $0.74 per share. This surprise was 5.71%.
Surprise Price and EPS
Ares Management has seen its estimates rise due to the 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 could prove to be more accurate than what others contributed to the consensus.
Ares Management’s EarningsESP is currently +5.97%, which suggests that analysts are bullish about its near-term earnings potential. This positive Earnings ESP combined with the stock’s Zacks Rank 3 (Hold) shows that there may be another win. The company is expected to release its next earnings report on February 9, 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. 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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Ares Management Corporation (ARES) : Free Stock Analysis Report