Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Catalyst Pharmaceutical (CPRX Quick QuoteCPRX – Free Report) , which belongs to the Zacks Medical – Drugs industry, could be a great candidate to consider.
This specialty drug company 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 11.46%.
For the last reported quarter, Catalyst came out with earnings of $0.20 per share versus the Zacks Consensus Estimate of $0.19 per share, representing a surprise of 5.26%. For the previous quarter, the company was expected to post earnings of $0.17 per share and it actually produced earnings of $0.20 per share, delivering a surprise of 17.65%.
For Catalyst, 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.
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.