Looking for a stock that might be in a good position to beat earnings at its next report? Consider Phoenix New Media Limited (FENG), a firm in the Broadcasting 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, FENG has beaten estimates by at least 35% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, FENG expected to earn 10 cents per share, while it actually produced earnings of 17 cents per share, a beat of 70%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 13 cents per share, when it actually saw earnings of 18 cents per share instead, representing a 38.5% positive surprise.
Thanks in part to this history, recent estimates have been moving higher for Phoenix New Media. In fact, the Earnings ESP for FENG 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 FENG, as the firm currently has a Zacks Earnings ESP of 11.1%, so another beat could be around the corner.
This is particularly true when you consider that FENG 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 FENG could see another beat at its next report, especially if recent trends are any guide.
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PHOENIX NEW MEDIA LTD (FENG): Free Stock Analysis Report
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