Will BWX (BWXT) Beat Estimates Again in Its Next Earnings Report?

Have you been looking for a stock that could be well-positioned to continue its earnings streak in its upcoming report? Consider BWX Technologies (BWXT), which belongs to the Zacks Electronics – Miscellaneous Components industry.

Looking at the last two reports, this supplier of nuclear fuel and components to the US government has had a strong streak of beating earnings estimates. The company has beaten estimates by an average of 10.44% over the last two quarters.

For the last reported quarter, BWX showed earnings of $0.76 per share versus the Zacks consensus estimate of $0.67 per share, delivering a surprise of 13.43%. In the previous quarter, the company was expected to post earnings of $0.94 per share and actually produced earnings of $1.01 per share, delivering a surprise of 7.45%.

Price and EPS are surprising

With this history, there has been a recent favorable revision in earnings estimates for BWX. In fact, the stock’s Zacks Earnings ESP (Expected Surprise Prediction) is positive, which is a great indicator of an earnings beat, especially when paired with its 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 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.

BWX currently has an Earnings ESP of +0.35%, 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 5, 2024.

Investors should remember, however, that a negative Earnings ESP reading does not indicate a failure to achieve expected profits, but a negative value reduces the predictive power of this indicator.

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 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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