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Can HMS Holdings (HMSY) 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 HMS Holdings Corp. , a firm in the Medical Information Systems 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, HMSYhas 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, HMSY expected to post earnings of 10 cents per share, while it actually produced earnings of 11 cents per share, a beat of 10.0%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 11 cents per share, when it actually delivered earnings of 15 cents per share instead, representing a 36.4% positive surprise.

HMS HLDGS CP Price and EPS Surprise

 

HMS HLDGS CP Price and EPS Surprise | HMS HLDGS CP Quote

Thanks in part to this history, recent estimates have been moving higher for HMS Holdings. In fact, the Earnings ESPfor HMSYis 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 HMSYas the firm currently has a Zacks Earnings ESP of 7.14%, so another beat could be around the corner.

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

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