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Can Imprivata (IMPR) Keep the Earnings Streak Alive This Quarter?

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Looking for a stock that might be in a good position to beat earnings at its next report? Consider Imprivata, Inc. , a firm in the Internet Software/Services 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, IMPR has beaten estimates by at least 25% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, IMPR expected to post a loss of 21 cents per share, while it actually produced a loss of 15 cents per share, a beat of 28.6%. Meanwhile, for the most recent quarter, the company looked to deliver a loss of 37 cents per share, when it actually reported loss of 26 cents per share instead, representing a 29.7% positive surprise.

IMPRIVATA INC Price and EPS Surprise

IMPRIVATA INC Price and EPS Surprise | IMPRIVATA INC Quote

Thanks in part to this history, recent estimates have been moving higher for Imprivata. In fact, the Earnings ESPfor IMPR 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 IMPR, as the firm currently has a Zacks Earnings ESP of 3.85%, so another beat could be around the corner.

This is particularly true when you consider that IMPR 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 IMPR could see another beat at its next report, especially if recent trends are any guide.

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