Will Air Transport Services (ATSG) beat estimates again in their next earnings report?

If you’re looking for a stock that has a solid track record of beating earnings estimates and is in a good position to hold the trend in its upcoming quarterly report, you should consider Air Transport Services (ATSG). This company, which is part of the Zacks Transportation – Air Freight and Freight industry, shows potential for another beat in earnings.

This air cargo company has an established record of beating earnings estimates, especially when looking at the previous two reports. The company claims an average surprise for the last two quarters of 20.07%.

For the latest quarter, Air Transport Services was expected to report earnings of $0.51 per share, but instead reported $0.59 per share, a surprise 15.69%. For the previous quarter, the consensus estimate was $0.45 per share, when it actually produced $0.56 per share, a surprise of 24.44%.

Price and Surprise EPS

For air transport services, estimates have trended higher, thanks in part to this surprise earnings story. And when you look at the stock’s positive Zacks Earnings ESP (Expected Surprise Prediction), it’s a great indicator of a future earnings pace, 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 of #3 (Hold) or better produce a positive surprise almost 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that exceeded 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 tied to change. The idea here is that analysts revising their estimates just before the earnings release have the latest information, which could potentially be more accurate than they and other consensus contributors predicted earlier.

Airline services currently has an earnings ESP of +1.89%, suggesting that analysts have recently become optimistic about the company’s earnings outlook. This positive ESP on earnings, when combined with the Zacks No. 1 ranking (strong buy) of the stock, indicates that another beat may be imminent. We expect the company’s next earnings report to be released on November 3, 2022.

With the Earnings ESP measure, it is important to note that a negative value reduces its predictive power; however, a negative earnings ESP does not indicate a shortfall.

Many companies end up beating the consensus EPS estimate, but that may not be the only basis for their stock rally. On the other hand, some stocks may hold firm even if they end up missing the consensus estimate.

For this reason, it is really important to check a company’s earnings ESP before its quarterly release to increase the chances of success. Be sure to use our earnings ESP filter to discover the best stocks to buy or sell before they are released.

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Air Transport Services Group, Inc (ATSG): Free Inventory Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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