Are you perhaps looking for a stock that has the potential to beat expectations in its next earnings report? Then you should consider Alcatel-Lucent (EPA: ALU), a company that is in the business of communications components and is a great candidate to exceed earnings again.
Looking at the last 2 earnings reports, Alcatel-Lucent is on a positive streak and has a great short-term history in exceeding expectations. In fact, the last two reports have seen the company beat estimates by around 50% both times.
The company was expected to make 2 cents per share loss two quarters ago, while actually only making a loss of 1 cent a share, beating expectations by 50%. Also, more recently in the last quarter, Alcatel was expected to report 4 cents a share in earnings, while the company actually reported earnings of 10 cents a share instead, showing a big positive surprise.
Thanks partly to this promising history, more recent estimations have increased for the company. The Earnings Expected Surprise Prediction (ESP) for the company is positive, showing a good sign of another beat.
The Zacks Earnings Expected Surprise Prediction compares the estimates that are most accurate to the broader consensus, seeking stocks that have recently seen huge revisions, suggesting that some analysts have more recently become bullish on the specific company’s earnings. As for Alcatel-Lucent this is the case, because the company currently has a Zacks Earnings ESP of 50%, indicating that another earnings beat could likely be around the corner.
The company also has a good Zacks Rank #2, indicating a buy, which could be a forerunner of outperformance and a sign for a solid earnings profile. With the recent trends, the company is likely to beat expectations again when it releases its next earnings report.
MT4 Chart: Alcatel
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