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Emerge Energy Services (EMES) Q4 Earnings: Stock to Beat?

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Fracking sand player Emerge Energy Services L.P. is set to release its fourth-quarter 2016 results before the opening bell on Monday, Feb 27.

In the preceding three months, the Southlake, TX-based partnership posted a negative earnings surprise of 34.78%.

Emerge Energy Services has a dismal earnings surprise history, missing estimates in each of the last four quarters with an average negative surprise of 64.28%.

Why a Likely Positive Surprise?

Our proven model shows that Emerge Energy Services is likely to beat earnings this quarter because it has the right combination of two key ingredients.

Zacks ESP:  Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +1.32%. This is very meaningful and a leading indicator of a likely positive earnings surprise for shares.You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: Emerge Energy Services carries a Zacks Rank #2 (Buy) which, when combined with a positive ESP, makes us confident about an earnings beat.

Note that stocks with Zacks Ranks #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating earnings. The Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement. 

What is Driving the Better-Than-Expected Earnings?

Emerge Energy Services’ successful initiatives in controlling costs (both fixed and variable) across all aspects of its business will improve its competitive positioning and augment its bottom line.

Emerge Energy Services LP Price and EPS Surprise

Moreover, crude’s massive recovery since February is expected to have a positive impact on Emerge Energy Services’ upcoming results. This is due to improved expectations in the production of the lucrative (and high margin) fracking sand that is used as a proponent by exploration and production companies. 

Other Stocks to Consider

Here are some other firms from the energy space you may want to consider on the basis of our model, which shows that they have the right combination of elements to post earnings beat this quarter:

W&T Offshore, Inc. (WTI - Free Report) is expected to release fourth-quarter earnings results on Mar 14. The company has an Earnings ESP of +73.91% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sprague Resources LP has an Earnings ESP of +3.64% and a Zacks Rank #2. The partnership is anticipated to release fourth-quarter earnings on Mar 9.

Carrizo Oil & Gas, Inc. has an Earnings ESP of +6.25% and a Zacks Rank #2. The company is likely to release fourth-quarter earnings on Feb 23.

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