U.S. Markets open in 6 hrs 8 mins

Why the Earnings Surprise Streak Could Continue for Addus HomeCare (ADUS)

Zacks Equity Research

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Addus HomeCare (ADUS). This company, which is in the Zacks Medical - Outpatient and Home Healthcare industry, shows potential for another earnings beat.

This provider of home-based personal care, nursing and rehabilitative therapy services has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 8.37%.

For the last reported quarter, Addus HomeCare came out with earnings of $0.56 per share versus the Zacks Consensus Estimate of $0.54 per share, representing a surprise of 3.70%. For the previous quarter, the company was expected to post earnings of $0.46 per share and it actually produced earnings of $0.52 per share, delivering a surprise of 13.04%.

Price and EPS Surprise

For Addus HomeCare, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Addus HomeCare currently has an Earnings ESP of +4.75%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #1 (Strong Buy) indicates that another beat is possibly around the corner.

Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Addus HomeCare Corporation (ADUS) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

  • At US$47.68, Is It Time To Put Entegris, Inc. (NASDAQ:ENTG) On Your Watch List?
    Business
    Simply Wall St.

    At US$47.68, Is It Time To Put Entegris, Inc. (NASDAQ:ENTG) On Your Watch List?

    Entegris, Inc. (NASDAQ:ENTG), which is in the semiconductor business, and is based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. Today I will analyse the most recent data on Entegris's outlook and valuation to see if the opportunity still exists.

  • Sweden's SEB says given list of clients ahead of money laundering broadcast
    Business
    Reuters

    Sweden's SEB says given list of clients ahead of money laundering broadcast

    Sweden's SEB said on Tuesday it had received a list of 194 of its corporate clients from public broadcaster SVT, a day before a programme airs investigating money laundering in the Baltics that is expected to include information about the bank. SEB, which has previously said it had found no sign of being systematically used for money laundering although it could not offer guarantees, said in a statement it had compared the names received from the broadcaster with its own internal analysis. Fears SEB could be dragged into a money-laundering scandal that has rocked Nordic rivals Danske Bank and Swedbank sent its shares plunging 13 percent on Friday after it said it had been sent questions by SVT's investigative news programme "Uppdrag Granskning".

  • Business
    Financial Times

    Centrica looks to reassure investors over outflow of energy supply customers

    Centrica has sought to reassure investors that growth in other parts of its business was offsetting a continued loss of energy supply customers in the UK, while it said the rate at which customers were abandoning Britain's biggest electricity and gas supplier was also reducing. The owner of British Gas lost a further 107,000 energy supply accounts in the four months to October in the UK, a market where the so-called Big Six electricity and gas providers have struggled for a number of years from fierce competition from smaller start-ups with lower cost bases offering cheap deals to households. Centrica said in a trading update on Thursday that the rate of losses during the four months to October was lower than for the first six months of the year and was “significantly lower” than in 2018.

  • Business
    Thomson Reuters StreetEvents

    Edited Transcript of ATHX earnings conference call or presentation 6-Nov-19 9:30pm GMT

    Q3 2019 Athersys Inc Earnings Call

  • Business
    Financial Times

    Investors lose billions as bubble in two HK companies bursts

    p Billions of dollars were wiped off the market value of two Hong Kong companies on Thursday, marking the latest examples of spectacular wipeouts in the city's equity market. p A lossmaking marble producer that had rallied 3,800 per cent this year saw its market capitalisation fall by $5.7bn — a 98 per cent decline — after index compiler MSCI said it would not include the stock in its globally tracked benchmarks.

  • Target shares surge after Q3 results
    Business
    Yahoo Finance Video

    Target shares surge after Q3 results

    Target crushed analysts' expectations for the third-quarter, with digital sales surging 31%. The retailer's same-day delivery services accounted for 80% of that growth.

  • Nifty, Sensex inch lower; Zee top gainer in Nifty 50
    Business
    Reuters

    Nifty, Sensex inch lower; Zee top gainer in Nifty 50

    Indian shares inched lower on Thursday as investors booked profits after the government said it had approved stake sales in some state-run companies, while Zee Entertainment Enterprises surged on the promoter group's plan to pare holdings. The government agreed to sell stakes in five state-run companies, including oil refiner Bharat Petroleum Corp (BPCL), its finance minister said on Wednesday, a move that could help bridge a widening fiscal gap. "A lot of good news is already factored into prices.

  • Millennial bets most of his savings on one of the stock market’s riskiest plays — and he’s about to cash in $1.5 million
    Business
    MarketWatch

    Millennial bets most of his savings on one of the stock market’s riskiest plays — and he’s about to cash in $1.5 million

    In the spring of 2010, when the stock market was picking up the pieces of the Great Recession, one twenty-something with a law degree and a penchant for flipping stocks was busy licking his wounds from one bad trade after another. “I was bullish on the global economy then, having understood the Fed and Obama would not allow any more core US investment/commercial banks to fail via the bailout and TARP, and quantitative easing,” he wrote in a post.

  • Is IQE (LON:IQE) Using Too Much Debt?
    Business
    Simply Wall St.

    Is IQE (LON:IQE) Using Too Much Debt?

    The first thing to do when considering how much debt a business uses is to look at its cash and debt together. How Much Debt Does IQE Carry? You can click the graphic below for the historical numbers, but it shows that as of June 2019 IQE had UK£12.0m of debt, an increase on none, over one year.

  • Trade Uncertainty Spikes, Global Markets Fall, FOMC Minutes On Tap
    Business
    FX Empire

    Trade Uncertainty Spikes, Global Markets Fall, FOMC Minutes On Tap

    The U.S. futures market is indicating a lower open on Wednesday after President Trump escalated fear the Phase One Trade Deal is on the rocks. President Trump, at a Cabinet Meeting, says if China doesn't make a deal by the December 15th deadline he will raise tariffs even higher. This news compounds word released earlier this that China's top officials are pessimistic a deal will be struck.

  • U.S. Fed approves merger between BB&T, SunTrust Banks
    Business
    Reuters

    U.S. Fed approves merger between BB&T, SunTrust Banks

    The U.S. Federal Reserve said on Tuesday it approved a merger between BB&T Corp and SunTrust Banks Inc, sealing the biggest tie-up of banks since the 2007-2009 global financial crisis. Analysts have said such a tie-up has been made possible by regulatory easing under the administration of President Donald Trump, which has encouraged banking regulators to take a more relaxed approach to approving mergers, bank applications and enforcement of post-crisis rules. The Fed said its approval was conditioned on several actions, including that BB&T must divest 30 branches and more than $2.4 billion in deposits to mitigate the competitive effects of the merger.

  • U.S. stock futures pare losses after report China’s Liu ‘cautiously optimistic’ over trade deal
    Business
    MarketWatch

    U.S. stock futures pare losses after report China’s Liu ‘cautiously optimistic’ over trade deal

    Stock futures slipped Thursday, but pared larger losses after China's vice premier, Liu He, reportedly said he's “cautiously optimistic” about getting to a preliminary phase 1 trade pact with the U.S. Dow Jones Industrial Average futures (YMZ19) eased 46 points, or 0.2%, to 27,754, while S&P 500 futures (ESZ19) slipped 5.25 points, or 0.2%, to 3,103.75. On Wednesday, the Dow Industrials (DJIA) fell 112.93 points, or 0.4%, to close at 27,821, while the S&P 500 (SPX) lost 0.4% to end at 3,108.46.

  • Business
    Thomson Reuters StreetEvents

    Edited Transcript of QD.N earnings conference call or presentation 18-Nov-19 12:00pm GMT

    Q3 2019 Qudian Inc Earnings Call

  • BMW orders more than 10 billion euros' worth of battery cells
    Business
    Reuters

    BMW orders more than 10 billion euros' worth of battery cells

    German carmaker BMW on Thursday said it had ordered more than 10 billion euros' ($11.07 billion) worth of battery cells from Chinese battery cell maker Contemporary Amperex Technology Co (CATL) and Samsung SDI . BMW said it had boosted its order with CATL to 7.3 billion euros from an original booking announced in mid-2018 that was worth 4 billion euros. It said the contract would last from 2020 to 2031.

  • Business
    U.S.News & World Report

    7 Undervalued Stocks to Buy

    The following seven stocks will exhibit one or more value qualities such as a lower than average price-earnings ratio, a low P/E ratio to growth rate or a company selling for less than its discounted cash flows. Here are a few undervalued candidates to add to your portfolio in this frothy market. Equitrans owns, operates, acquires and develops natural gas transmission, storage and water assets in the Appalachian Basin.

  • Bank of America upgrades Canopy Growth to ‘buy’
    Business
    Yahoo Finance Video

    Bank of America upgrades Canopy Growth to ‘buy’

    Canopy Growth shares are popping after Bank of America upgraded it to a "buy" from "neutral." The bank says the worst looks over for Canopy. Yahoo Finance's Alexis Christoforous and Jared Blikre discuss on The Ticker

  • Crew encountered situation not in training manuals on fatal Southwest flight, investigators say
    Finance
    American City Business Journals

    Crew encountered situation not in training manuals on fatal Southwest flight, investigators say

    During the chaotic scene inside Southwest Flight 1380, flight attendants had to deal with a situation not covered in the training manual. The woman sitting in seat 14A, Jennifer Riordan, was partially sucked out of the plane and died from her injuries. The death of Riordan, a New Mexico businesswoman, marked the first passenger fatality in Southwest Airlines Co. (NYSE: LUV) history.

  • Daimler's electric Mercedes-Benz SUV to make U.S. debut at $67,900
    Business
    Reuters

    Daimler's electric Mercedes-Benz SUV to make U.S. debut at $67,900

    The Mercedes-Benz EQC 400 4MATIC, which can also charge its batteries on the move, can recharge from 10% to 80% in 40 minutes, Mercedes-Benz USA said. Daimler's electric sports utility vehicle will face competition from Tesla Inc's Model Y SUV, which starts at a price of $39,000 and will be available in 2021. Daimler in September reiterated its plan to have up to 10 electrified car variants by 2022, and Chief Executive Officer Dieter Zetsche said he hoped the EQC and other electric cars would account for 15% to 25% of its sales by 2025.

  • Pressure Mounts on Trudeau to End Rail Strike as Effects Spread
    Business
    Bloomberg

    Pressure Mounts on Trudeau to End Rail Strike as Effects Spread

    Pressure is mounting on Canadian Prime Minister Justin Trudeau to take action to end a railway strike that's curtailing shipments of one the world's biggest exporters of raw materials. More than 3,200 conductors and yard operators walked off the job at Canadian National Railway Co. on Tuesday, disrupting cargo in a country that relies heavily on two main rail companies to transport oil, grain and consumer goods from its inland Prairies for export to the U.S. and the world. Parliament is on hiatus until Dec. 5 after Trudeau swore in a new cabinet on Wednesday, but industry groups and the Alberta government, home to the country's oil sands, are pushing the government to move more swiftly to end the first strike in a decade at Canada's largest railway.

  • Business
    Thomson Reuters StreetEvents

    Edited Transcript of CHK earnings conference call or presentation 5-Nov-19 2:00pm GMT

    Q3 2019 Chesapeake Energy Corp Earnings Call

  • Business
    Rigzone.com

    Exxon Credit Rating Outlook Lowered by Moody's

    Exxon Mobil Corp. had the outlook on its top-notch debt rating lowered by Moody's Investors Service Inc. to negative due to a 'substantial' cash burn to fund growth.

  • Johnson & Johnson loses pelvic mesh class action in Australia
    Business
    Reuters

    Johnson & Johnson loses pelvic mesh class action in Australia

    More than 1,350 Australian women won a seven-year-old class action lawsuit on Thursday against Johnson & Johnson (J&J) for misleading patients and surgeons about the risks of the pharmaceutical giant's pelvic mesh implants. The suit is one of many J&J has faced in the United States, Canada and Europe over the implants, used to treat urinary incontinence and pelvic organ prolapse, in which organs shift from normal positions. J&J in October agreed to pay nearly $117 million to resolve claims in 41 U.S. states and the District of Columbia.

  • Teva, Bausch Could Be Next to File for Bankruptcy
    Business
    GuruFocus.com

    Teva, Bausch Could Be Next to File for Bankruptcy

    GuruFocus has detected 6 Warning Signs with AKAOQ. Click here to check it out. AKAOQ 30-Year Financial Data The intrinsic value of AKAOQ Peter Lynch Chart of AKAOQ The highest-profile filing was not by a biotech, but by pain management company Purdue Pharma, which was hit with a wave of lawsuits for its role in fueling the opioid crisis through aggressive marketing of its drug Oxycontin.

  • Business
    GuruFocus.com

    Warren Buffett: If an Accountant Does Not Record Stock Options as an Expense, Do They Exist?

    The rise of stock options as a method of compensating senior managers at large companies has been one of the most significant developments in corporate finance. Ever since the Clinton administration made it tax-efficient for companies to pay executives with stock options in the mid-1990s, there has been an explosion in the practice. Warren Buffett (Trades, Portfolio) has long criticized the practice, however, arguing that it represents an egregious transfer of wealth from shareholders to managers.

  • Tesla Cybertruck: Is It A Monster Machine Or Sci-Fi Blunder?
    Business
    Investor's Business Daily

    Tesla Cybertruck: Is It A Monster Machine Or Sci-Fi Blunder?

    The long-awaited unveiling of the so-called Tesla cybertruck Thursday in Los Angeles marks the electric-car maker's first foray into the pickup segment of the auto market, the most profitable in the industry. A concern among Wall Street analysts is that Tesla will push the design aspects too far to gain a widespread audience beyond the company's hard-core fans. In mid-October, responding with a tweet about the vehicle's design, Musk described the Tesla cybertruck, as he called it, as being "closer to an armored personnel carrier from the future." Musk also has called it a "Blade Runner pickup truck," right out of a sci-fi movie.