Will Copa Holdings (CPA) Beat Estimates Again in Its Next Earnings Report? – July 9, 2024

Looking for a stock that has consistently beaten earnings estimates and may be well-positioned to continue that streak into its next quarterly report? Copa Holdings (Accountant – Free Report), a member of the Zacks Transportation – Airline industry, could be a great candidate to consider.

The holding company for the Panamanian national airline has a well-established reputation for beating earnings estimates, especially looking at the past two reports. The company boasts an average earnings surprise of 21.37% over the past two quarters.

Copa Holdings was expected to post earnings of $3.27 per share for the last quarter but instead it came out with earnings of $4.19 per share, delivering a surprise of 28.13%. For the previous quarter, the consensus estimate was $3.90 per share when it actually came out with earnings of $4.47 per share, delivering a surprise of 14.62%.

Price and EPS are surprising

Given this earnings history, recent estimates for Copa Holdings 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 the 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.

Copa Holdings currently has an Earnings ESP of +3.01%, 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, 2024.

When the 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 lack of earnings for the stock.

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.