Will Revvity (RVTY) 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 Revvity (RVTY), which belongs to the Zacks Medical Services industry.

The scientific instrument maker has a well-established reputation for beating earnings estimates, especially when looking at the past two reports. The company boasts an average earnings surprise of 6.48% over the past two quarters.

For the last reported quarter, Revvity announced earnings of $0.98 per share versus the Zacks consensus estimate of $0.94 per share, representing a surprise of 4.26%. In the previous quarter, the company was expected to post earnings of $1.15 per share and actually delivered earnings of $1.25 per share, representing a surprise of 8.70%.

Price and EPS are surprising

Given this earnings history, Revvita’s recent estimates 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.

Revvity currently has an Earnings ESP of +0.76%, suggesting that analysts have become bullish on its near-term earnings potential. When we combine this positive Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another beat is likely just around the corner. The company’s next earnings report is expected to be released on July 29, 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, 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.

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