Will Bank of New York Mellon (BK) Beat Estimates Again in Its Next Earnings Report? – July 10, 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? Bank of New York Mellon Corporation (BK – A free report), belonging to the Zacks Banks – Major Regional industry, could be a great candidate for consideration.

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 11.34% over the past two quarters.

For the last quarter, The Bank of New York Mellon was expecting earnings of $1.19 per share but instead came out with earnings of $1.29, delivering a surprise of 8.40%. For the previous quarter, the consensus estimate was $1.12 per share when in reality earnings were $1.28 per share, delivering a surprise of 14.29%.

Price and EPS are surprising

Given this earnings history, recent estimates for The Bank of New York Mellon 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.

Bank of New York Mellon currently has an Earnings ESP of +0.65%, 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 July 12, 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.