Will Atmus Filtration (ATMU) Beat Estimates Again in Its Next Earnings Report? – July 15, 2024

If you are looking for a stock that has a solid history of beating earnings estimates and is well-positioned to continue the trend into its next quarterly report, you should consider Atmus Filtration Technologies (ATMU – Free report.) This company, which operates in the Zacks Pollution Control industry, shows potential for another earnings beat.

Looking at the last two reports, this industrial filtration products company has had a strong streak of beating earnings estimates. The company has beaten estimates by an average of 7.82% over the last two quarters.

For the last reported quarter, Atmus Filtration showed earnings of $0.60 per share, compared to the Zacks consensus estimate of $0.59 per share, representing a surprise of 1.69%. In the previous quarter, the company was expected to post earnings of $0.43 per share and actually came out at $0.49 per share, representing a surprise of 13.95%.

Price and EPS are surprising

Given this earnings history, recent estimates for Atmus Filtration have been rising. 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.

Atmus Filtration currently has an Earnings ESP of +5.63%, 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.

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.