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Why the Earnings Streak Will Continue for Amedisys (AMED)

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Looking for a stock that might be in a good position to beat earnings at its next report? Consider Amedisys Inc (AMED - Free Report) , a firm in the Medical – Outpatient and Home Healthcare 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, AMED 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, AMED expected to post earnings of 41 cents per share, while it actually produced earnings of 47 cents per share, a beat of 14.6%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 50 cents per share, when it actually delivered earnings of 62 cents per share, representing 24% positive surprise.

 

Amedisys Inc Price and Consensus

Thanks in part to this history, recent estimates have been moving higher for AMED Corp. In fact, the Earnings ESP for AMED 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 AMED, as the firm currently has a Zacks Earnings ESP of +0.32%, so another beat could be around the corner.

This is particularly true when you consider that AMED has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank stocks here.

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 AMED could see another beat at its next report, especially if recent trends are any guide.

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