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Earnings Estimates Rising for Everi Holdings (EVRI): Will It Gain?

Zacks Equity Research

Investors might want to bet on Everi Holdings (EVRI), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.

The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this cash access products company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Everi Holdings, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

The company is expected to earn $0.07 per share for the current quarter, which represents a year-over-year change of +275%.

Over the last 30 days, three estimates have moved higher for Everi Holdings while two have gone lower. As a result, the Zacks Consensus Estimate has increased 9.09%.

Current-Year Estimate Revisions

For the full year, the company is expected to earn $0.34 per share, representing a year-over-year change of +240%.

There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, four estimates have moved up for Everi Holdings versus one negative revision. This has pushed the consensus estimate 10.39% higher.

Favorable Zacks Rank

Thanks to promising estimate revisions, Everi Holdings currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

Investors have been betting on Everi Holdings because of its solid estimate revisions, as evident from the stock's 43.4% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.


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