Will KBR (KBR) Beat Estimates Again in Its Next Earnings Report? – July 16, 2024

Have you been looking for a stock that might be well-positioned to continue its earnings streak in its upcoming report? KBR Inc. (KBR – Free report) that belongs to the Zacks Engineering – R&D Services industry.

Looking at the last two reports, the engineering and construction company has had a strong streak of beating earnings estimates. The company has beaten estimates by 5.74%, on average, over the last two quarters.

For the last reported quarter, KBR showed earnings of $0.77 per share, versus the Zacks consensus estimate of $0.70 per share, representing a surprise of 10%. In the previous quarter, the company was expected to show earnings of $0.68 per share and actually produced earnings of $0.69 per share, representing a surprise of 1.47%.

Price and EPS are surprising

Given this earnings history, recent estimates for KBR 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.

KBR currently has an Earnings ESP of +0.42%, 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 24, 2024.

However, investors should remember that a negative Earnings ESP reading does not indicate a failure to achieve 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.