Will Fairpoint Communications (FRP) Crush Estimates at Its Next Earnings Report?
Looking for a stock that might be in a good position to beat earnings at its next report? Consider Fairpoint Communications, Inc. FRP, a firm in the Wireless Non-US 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, FRP has beaten estimates by at least 100% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, FRP expected to post a loss of $1.20 per share, while it actually produced earnings of $1.49 per share, a solid beat of more than 100%. Meanwhile, for the most recent quarter, the company looked to post a loss of 60 cents per share, when it actually saw earnings of $1.46 per share instead, again representing a positive surprise of much more than 100%.
Thanks in part to this history, recent estimates have been moving higher for Fairpoint Communications. In fact, the Earnings ESP for FRP 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 FRP, as the firm currently has a Zacks Earnings ESP of 30.40%, so another beat could be around the corner.
This is particularly true when you consider that FRP has a great Zacks Rank #1 (Strong 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 FRP could see another beat at its next report, especially if recent trends are any guide.
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FAIRPOINT COMM (FRP): Free Stock Analysis Report
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