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Why the Earnings Streak Will Continue for Trupanion (TRUP)

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Looking for a stock that might be in a good position to beat earnings at its next report? Consider Trupanion, Inc. (TRUP - Free Report) , a firm in the Insurance-Accident & Health 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, TRUP has beaten estimates by at least 15% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, TRUP expected to post a loss of 15 cents per share, while it actually produced a loss of 11 cents per share, a beat of 26.7%. Meanwhile, for the most recent quarter, the company looked to deliver a loss of 11 cents per share, when it actually saw a loss of 9 cents per share instead, representing a 18.2% positive surprise.

TRUPANION INC Price and EPS Surprise

Thanks in part to this history, recent estimates have been moving higher for Trupanion. In fact, the Earnings ESP for TRUP 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 TRUP, as the firm currently has a Zacks Earnings ESP of 10.00%, so another beat could be around the corner.

This is particularly true when you consider that TRUP has a great Zacks Rank #2 (Buy) 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 TRUP could see another beat at its next report, especially if recent trends are any guide.

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