Will AMN Healthcare (AMN) beat estimates again in its next earnings report?

Are you looking for a stock that has consistently beaten earnings estimates and could be well-positioned to continue that streak in the next quarterly report? AMN Healthcare Services (AMN), which belongs to the Zacks Medical Services industry, could be an excellent stock to consider.

This healthcare staffing firm has a strong history of achieving top salary estimates, especially considering its two previous reports. The company boasts an average surprise for the last two quarters of 12.29%.

For the last reported quarter, AMN Healthcare posted earnings of $2.48 per share versus the Zacks Consensus Estimate of $2.17 per share, representing a surprise of 14.29%. For the previous quarter, the company was expected to post earnings of $2.33 per share and it actually produced earnings of $2.57 per share, delivering a surprise of 10.30%.

Price and EPS surprise

With this earnings history in mind, AMN Healthcare’s latest estimates are getting higher. In fact, the company’s Zacks Earnings ESP (expected surprise) is positive, which is a great sign of earnings growth, especially when you combine this metric with a nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks in this combination, the number of stocks that beat the consensus could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimates to the Zacks Consensus Estimates for the quarter; The Most Accurate Estimate is the Zacks Consensus version, which is defined in terms of change. The idea is that analysts reviewing their estimates just before an earnings release have the latest information, which could potentially be more accurate than what they and other consensus participants had previously predicted.

AMN Healthcare currently has an Earnings ESP of +0.51%, which suggests analysts have recently become optimistic about the company’s earnings prospects. This positive Earnings ESP combined with the stock’s Zacks Rank #3 (Hold) indicates that another rally is likely just around the corner. We expect the company’s next earnings report to be published on May 4, 2023.

For the Earnings ESP metric, remember that a negative value reduces its predictive power; however, a negative earnings ESP does not mean a loss of earnings.

Many companies end up beating consensus EPS estimates, though that’s not the only reason their shares rise. Additionally, some stocks may remain stable even if they fall short of consensus estimates.

For this reason, it is very important to check a company’s earnings ESP before its quarterly release to increase the chances of success. Use our Earnings ESP filter to find the best stocks to buy or sell before they report.

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