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Tale of the Tape

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Kennedy-Wilson Holdings, Inc. (KW - Snapshot Report), a firm in the property management industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, KW has beaten estimates by at least 55% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, KW expected to report a loss of 12 cents per share, while it actually reported a loss of 5 cents per share, a beat of 58.3%. Meanwhile, for the most recent quarter, the company looked to post a loss of 11 cents per share, when it actually saw earnings of 37 cents per share instead, representing a significant positive surprise.

Thanks in part to this history, recent estimates have been moving higher for Kennedy-Wilson Holdings. In fact, the Earnings ESP for KW is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for KW, as the firm currently has a Zacks Earnings ESP of 44.4%, so another beat could be around the corner.

This is particularly true when you consider that KW has a great Zacks Rank #3 (Hold) which can be a harbinger of outperformance and a signal for a strong earnings profile. And when you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that KW could see another beat at its next report, especially if recent trends are any guide.

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