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Why the Earnings Streak Will Continue for FMC Corp. (FMC)

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Looking for a stock that might be in a good position to beat earnings at its next report? Consider FMC Corp. (FMC - Free Report) , a firm in the Chemicals-Diversified 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, FMC has beaten estimates by at least 10% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, FMC expected to post earnings of 63 cents per share, while it actually produced a loss of 77 cents per share, a beat of 22.2%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 52 cents per share, when it actually posted earnings of 58 cents per share, representing a 11.5% positive surprise.

FMC CORP Price and EPS Surprise

FMC CORP Price and EPS Surprise | FMC CORP Quote

Thanks in part to this history, recent estimates have been moving higher for FMC Corp. In fact, the Earnings ESP for FMC 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 FMC, as the firm currently has a Zacks Earnings ESP of 6.06%, so another beat could be around the corner.

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

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