Will Dentsply (XRAY) Beat Estimates Again in Its Next Earnings Report?

If you’re 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 Dentsply (XRAY). This company, which operates in the Zacks Medical – Dental Supplies industry, shows potential for another earnings beat.

Looking at the last two reports, this dental products manufacturer has had a strong streak of beating earnings estimates. The company has beaten estimates by an average of 4.19% over the last two quarters.

For the last quarter, Dentsply was expected to post earnings of $0.42 per share, but instead the company reported earnings of $0.45 per share, delivering a surprise of 7.14%. For the previous quarter, the consensus estimate was $0.81 per share, when the company actually delivered earnings of $0.82 per share, delivering a surprise of 1.23%.

Price and EPS are surprising

Given this earnings history, recent estimates for Dentsply have been rising. In fact, the company’s Zacks Earnings ESP (Expected Surprise Prediction) is positive, which is a great sign of an earnings beat, especially when paired with its strong 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.

Dentsply currently has an Earnings ESP of +1.70%, suggesting that analysts have recently become bullish on the company’s earnings prospects. This positive Earnings ESP, combined with the stock’s Zacks Rank #3 (Hold), indicates that another beat is likely just around the corner. We expect the company’s next earnings report to be released on August 7, 2018.

In the case of the Earnings ESP indicator, it is important to remember that a negative value reduces its predictive power; however, a negative Earnings ESP value does not mean that profits have not been achieved.

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 your chances of success. Make sure you use our Earnings ESP Filter to discover the best stocks to buy or sell before they are released.

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DENTSPLY SIRONA Inc. (XRAY): Free Stock Analysis Report

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