Will K12 (LRN) surpass earnings estimates in next report?
Are you interested in a stock that has a strong track record of beating earnings estimates? Look no further than K12 (LRN), a company in the Zacks Schools industry. With a history of surpassing expectations, K12 could be a promising option for investors.
In the most recent quarter, K12 reported earnings of $0.94 per share, exceeding the Zacks Consensus Estimate of $0.20 per share by a whopping 370%. And in the previous quarter, the company outperformed expectations by 9.23%, with earnings of $1.42 per share compared to an estimated $1.30 per share.
Analysts have taken notice of K12’s impressive earnings results, resulting in an increase in recent estimates for the company. The Zacks Earnings ESP (Expected Surprise Prediction) for K12 is positive, indicating a potential earnings beat, especially when combined with its favorable Zacks Rank.
Research shows that stocks with a positive Earnings ESP and a Zacks Rank #3 (Hold) or better tend to surprise positively around 70% of the time. This means that out of 10 stocks with this combination, up to seven could beat the consensus estimate.
Currently, K12 has an Earnings ESP of +0.68%, suggesting that analysts are optimistic about the company’s earnings prospects. This, along with its Zacks Rank #3 (Hold), signals the possibility of another earnings beat on the horizon.
While a negative Earnings ESP can diminish the predictive power of the metric, it does not guarantee an earnings miss. Many companies still exceed the consensus EPS estimate, leading to potential stock gains. It’s crucial to check a company’s Earnings ESP before its quarterly release to improve the chances of success.
If you’re looking for insights on the best stocks to buy or sell before their earnings reports, consider utilizing our Earnings ESP Filter. Stay informed and make informed investment decisions.
