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Will EMCOR Group (EME) Crush Estimates at Its Next Earnings Report?

Zacks Equity Research

Looking for a stock that might be in a good position to beat earnings at its next report? Consider EMCOR Group, Inc. EME, a firm in the Building Products - Heavy Construction 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, EME has beaten estimates by at least 10% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, EME expected to post earnings of 71 cents per share, while it actually produced earnings of 95 cents per share, a beat of 33.8%.  Meanwhile, for the most recent quarter, the company looked to deliver earnings of 76 cents per share, when it actually saw earnings of 85 cents per share instead, representing an 11.8% positive surprise.

EMCOR GROUP INC Price and EPS Surprise

EMCOR GROUP INC Price and EPS Surprise | EMCOR GROUP INC Quote

Thanks in part to this history, recent estimates have been moving higher for EMCOR Group. In fact, the Earnings ESP for EME 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 EME, as the firm currently has a Zacks Earnings ESPof 1.21% so another beat could be around the corner.

This is particularly true when you consider that EME has a great Zacks Rank #1 (Strong Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank stocks here.

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 EME could see another beat at its next report, especially if recent trends are any guide.

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