Is Kinsale Capital Group, Inc. (KNSL) Will Beat Estimates Again in Its Next Earnings Report?

Are you looking for a stock that has consistently beaten earnings estimates and could be well-positioned to continue that streak in the next quarterly report? Kinsale Capital Group, Inc. (KNSL), which belongs to the Zacks Insurance – Property and Casualty industry, could be an excellent candidate to consider.

This company has a well-established reputation for beating earnings estimates, especially looking at the past two reports. The company boasts an average earnings surprise of 17.93% over the past two quarters.

For the last reported quarter, Kinsale Capital Group, Inc. posted earnings of $2.60 per share versus the Zacks Consensus Estimate of $2.16 per share, representing a surprise of 20.37%. The company was expected to post earnings of $1.42 per share for the previous quarter and actually produced earnings of $1.64 per share, delivering a surprise of 15.49%.

Price and EPS surprise

In the case of Kinsale Capital Group, Inc. Estimates are trending upwards, thanks in part to a history of surprising results. And if you look at the positive Zacks Earnings ESP (Expected Surprise Estimate), it is a great indicator of future earnings growth, especially when combined with the solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better deliver a positive surprise almost 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat consensus estimates could be as many 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.

Kinsale Capital Group, Inc. currently has an Earnings ESP of +3.34%, suggesting that analysts have become bullish on its near-term earnings potential. When we combine this positive Earnings ESP with the stock’s Zacks Rank #1 (Strong Buy), we can see that another beat is likely just around the corner. The company’s next earnings report is expected to be released on April 27, 2023.

For the Earnings ESP metric, remember that a negative value reduces its predictive power; however, a negative earnings ESP does not mean a loss of earnings.

Many companies end up beating consensus EPS estimates, but that may not be the only basis for their stock growth. On the other hand, some stocks can maintain their position 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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