Will PBF Energy (PBF) beat estimates again in its next earnings report?

If you are looking for a stock that has a solid history of beating earnings estimates and is well-positioned to continue that trend in its next quarterly report, you should consider PBF Energy (PBF). This company, which operates in the Zacks Oil and Gas – Refining and Marketing industry, shows the potential to achieve another earnings record.

This refiner has had a good streak of beating earnings estimates, especially looking at the last two reports. The average surprise over the last two quarters was 6.12%.

PBF Energy was expected to report earnings of $2.22 per share for the most recent quarter, but instead reported earnings of $2.29 per share, representing a surprise of 3.15%. The consensus estimate for the prior quarter was $2.53 per share when it actually delivered $2.76 per share, representing a surprise of 9.09%.

Given this earnings history, PBF Energy’s latest estimates are higher. In fact, the company’s Zacks Earnings ESP (expected surprise) is positive, which is a great sign of earnings growth, especially when you combine this metric with a nice Zacks Rank.

Our research shows that stocks with a combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better deliver a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat 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 revision of the Zacks Consensus definition that is related to revision. The idea is that analysts revising their estimates just before an earnings release have the latest information, which could potentially be more accurate than what they and other contributors to the consensus had previously predicted.

PBF Energy currently has an Earnings ESP of +18.34%, which suggests that analysts have recently become bullish on the company’s earnings prospects. This positive Earnings ESP combined with the stock’s Zacks Rank #2 (Buy) indicates that another beatdown is likely just around the corner. We expect the company’s next earnings report to be released on November 2, 2023.

When Earnings ESP is negative, investors should remember that this will reduce the predictive power of the indicator. However, a negative value is not an indicator of a stock not making profits.

Many companies end up beating consensus EPS estimates, although that’s not the only reason their stocks appreciate. In addition, some stocks can remain stable even if they end up missing consensus estimates.

For this reason, it is very important to check a company’s earnings ESP before its quarterly release to increase the chances of success. Use our Earnings ESP filter to find the best stocks to buy or sell before they report.

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