Will BJ’s Restaurants (BJRI) Beat Estimates Again in Its Next Earnings Report?

Looking for a stock that has consistently beaten earnings estimates and could be well-positioned to continue its streak into its next quarterly report? BJ’s Restaurants (BJRI), a member of the Zacks Retail – Restaurants industry, could be a great candidate to consider.

The restaurant chain has had a good streak of beating earnings estimates, especially when looking at the two previous reports. The average surprise over the last two quarters was 69.63%.

For the last reported quarter, BJ’s Restaurants posted earnings of $0.32 per share versus the Zacks consensus estimate of $0.15 per share, representing a surprise of 113.33%. In the previous quarter, the company was expected to post earnings of $0.27 per share and actually came out at $0.34 per share, representing a surprise of 25.93%.

Price and EPS are surprising

In the case of BJ’s Restaurants, estimates are rising, thanks in part to this history of earnings surprises. And when you look at the stock’s positive Zacks Earnings ESP (Expected Surprise Prediction), it’s a great indicator of future earnings beats, especially when paired with its solid 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 the 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.

BJ’s Restaurants currently has an Earnings ESP of +9.25%, 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.

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, 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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BJ’s Restaurants, Inc. (BJRI): Free Stock Analysis Report

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