Why CA Technologies (CA) is Poised to Beat Earnings Estimates (Again) - Tale of the Tape
27 Janvier 2014 - 2:41PM
Zacks
Looking for a stock that might be in
a good position to beat earnings at its next report? Consider
CA Technologies (CA), a firm in the Business
Software & Services 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, CA has beaten estimates by at least 15% in both
cases, suggesting it has a nice short-term history of crushing
expectations.
Earnings in Focus
Two quarters ago, CA expected to earn 68 cents per share, while it
actually produced earnings of 83 cents per share, a beat of 22.1%.
Meanwhile, for the most recent quarter, the company looked to
deliver earnings of 68 cents per share, when it actually saw
earnings of 80 cents per share instead, representing a 17.7%
positive surprise.
Thanks in part to this history, recent estimates have been moving
higher for CA Technologies. In fact, the Earnings ESP for CA 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 CA , as the firm currently has a Zacks
Earnings ESP of 1.72%, so another beat could be around the
corner.
This is particularly true when you consider that CA has a great
Zacks Rank #2 (Buy) which can be a harbinger of outperformance and
a signal for a strong earnings profile. And 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 CA
could see another beat at its next report, especially if recent
trends are any guide.
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