Wall way expects a year-over-year refuse at earnings above lower revenues when Encore line (WIRE) reports results during the belt ended December 2018. however this widely-known consensus hope is important at gauging the company's earnings picture, a powerful factor that could impact its near-term stock charge is how the authentic results compare ought to these estimates.
The stock force affect higher if these key numbers peak expectations at the upcoming earnings report. above the other hand, if they miss, the stock can affect lower.
While the sustainability of the immediate charge convert and future earnings expectations will mainly depend above management's discussion of brood conditions above the earnings call, it's worth handicapping the probability of a sure EPS surprise.
Zacks Consensus Estimate
This copper wire maker is expected ought mail quarterly earnings of $0.73 per piece at its upcoming report, which represents a year-over-year convert of -4%.
Revenues are expected ought exist $297.42 million, down 1.3% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS evaluate during the belt has remained unchanged at the persist 30 days. This is essentially a reflection of how the covering analysts dine collectively reassessed their initial estimates at this period.
Investors ought own at brood that an aggregate convert can no always meditate the bid of evaluate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings Whisper
Estimate revisions ahead of a company's earnings free offer clues ought the brood conditions during the era whose results are coming out. This insight is at the heart of our proprietary astound prediction copy -- the Zacks earnings ESP (Expected astound Prediction).
The Zacks earnings ESP compares the Most accurate evaluate ought the Zacks Consensus evaluate during the quarter; the Most accurate evaluate is a more contemporary version of the Zacks Consensus EPS estimate. The eyesight here is that analysts revising their estimates accurate ago an earnings free dine the latest information, which could potentially exist more accurate than what they and others contributing ought the consensus had predicted earlier.
Thus, a sure or negative earnings ESP reading theoretically indicates the apt deviation of the authentic earnings from the consensus estimate. However, the model's predictive force is important during sure ESP readings only.
A sure earnings ESP is a vigorous predictor of an earnings beat, especially when combined with a Zacks degree #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our inquiry shows that stocks with this combination compose a sure astound almost 70% of the time, and a firm Zacks degree indeed increases the predictive force of earnings ESP.
Please notice that a negative earnings ESP reading is no indicative of an earnings miss. Our inquiry shows that it is difficult ought predict an earnings strike with any degree of faith during stocks with negative earnings ESP readings and/or Zacks degree of 4 (Sell) or 5 (Strong Sell).
How dine the Numbers Shaped Up during Encore Wire?
For Encore Wire, the Most accurate evaluate is the too during the Zacks Consensus Estimate, suggesting that there are no contemporary analyst views which disagree from what dine been considered ought derive the consensus estimate. This has resulted at an earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks degree of #2.
So, this combination makes it difficult ought conclusively predict that Encore line will strike the consensus EPS estimate.
Does earnings astound History own Any Clue?
Analysts always deem ought what extent a corporation has been capable ought competition consensus estimates at the past however calculating their estimates during its future earnings. So, it's worth taking a watch at the astound history during gauging its affect above the upcoming number.
For the persist reported quarter, it was expected that Encore line used to mail earnings of $0.69 per piece when it indeed produced earnings of $1.13, delivering a astound of +63.77%.
Over the persist four quarters, the corporation has beaten consensus EPS estimates three times.
Bottom Line
An earnings strike or lose can no exist the only basis during a stock moving higher or lower. Many stocks aim up losing basis despite an earnings strike owing ought other factors that disappoint investors. Similarly, unforeseen catalysts aid a quantity of stocks acquire despite an earnings miss.
That said, betting above stocks that are expected ought strike earnings expectations does amplify the odds of success. This is why it's worth checking a company's earnings ESP and Zacks degree ahead of its quarterly release. invent sure ought apply our earnings ESP Filter ought disclose the best stocks ought buy or sell ago they've reported.
Encore line doesn't watch a compelling earnings-beat candidate. However, investors ought salary attention ought other factors also during betting above this stock or staying away from it ahead of its earnings release.
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Encore line corporation (WIRE) : free Stock Analysis Report
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