Will Crescent Energy (CRGY) Beat Estimates Again in Its Next Earnings Report? – July 15, 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? Crescent Energy (CRGI – Free Report), a member of the Zacks Alternative Energy – Other industry, could be a great candidate to consider.

The oil and gas company has had a good streak of beating earnings estimates, especially looking at the two previous reports. The average surprise over the last two quarters was 165.87%.

For the last quarter, Crescent Energy was expected to post earnings of $0.18 per share but instead the company reported earnings of $0.46 per share, delivering a surprise of 155.56%. For the previous quarter, the consensus estimate was $0.21 per share when the company actually produced earnings of $0.58 per share, delivering a surprise of 176.19%.

Price and EPS are surprising

Given this earnings history, Crescent Energy’s latest estimates are moving higher. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric 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.

Crescent Energy currently has an Earnings ESP of +7.61%, suggesting 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.

In the case of the Earnings ESP indicator, it is important to remember that a negative value reduces its predictive power; however, it is important to remember that a negative Earnings ESP does not indicate a divergence in earnings.

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.