Looking for a stock that might be in a good position to beat earnings at its next report? Consider Denbury Resources Inc. DNR, a firm in the Oil and Gas - Exploration and Production - United States 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, DNR 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, DNR expected to post a loss of 2 cents per share, while it actually saw break-even earnings per share, a beat of 100%. Meanwhile, for the most recent quarter, the company looked to deliver a loss of 1 cent per share, when it actually saw earnings of 4 cents per share instead, representing a 500% positive surprise.
Denbury Resources Inc. Price and EPS Surprise
Denbury Resources Inc. Price and EPS Surprise | Denbury Resources Inc. Quote
Thanks in part to this history, recent estimates have been moving higher for Denbury Resources. In fact, the Earnings ESP for DNR 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 DNR, as the firm currently has a Zacks Earnings ESP of +77.78%, so another beat could be around the corner.
This is particularly true when you consider that DNR 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 DNR could see another beat at its next report, especially if recent trends are any guide.
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Denbury Resources Inc. (DNR) : Free Stock Analysis Report
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