Can Basic Energy (BAS) Keep the Earnings Streak Alive This Quarter?

Zacks

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Basic Energy Services, Inc. (BAS), a firm in the Oil Equipment Service 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, BAS has beaten estimates by at least 30% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, BAS expected to report a loss of 26 cents per share, while it actually produced a much narrower loss of 18 cents per share, a beat of 30.8%. Meanwhile, for the most recent quarter, the company looked to deliver a loss of 8 cents per share, when it actually saw a narrower loss of 5 cents per share instead, representing a 37.5% positive surprise.

Thanks in part to this history, recent estimates have been moving higher for Basic Energy. In fact, the Earnings ESP for BAS 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 BAS, as the firm currently has a Zacks Earnings ESP of 66.7%, so another beat could be around the corner.

This is particularly true when you consider that BAS has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. And 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 BAS could see another beat at its next report, especially if recent trends are any guide.

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