Ricoh Co. (RICOY Quick QuoteRICOY - Free Report) shares soared 15.1% in the last trading session to close at $10.50. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13.2% gain over the past four weeks.

The increase in share price can be attributed to Ricoh’s optimistic mid- to long-term plan. The company expects minimum operating profit of ¥150 billion by fiscal year 2025, driven by its ongoing initiatives to transform as a digital services company.

For fiscal year 2022, Ricoh expects sales to hit ¥2000 billion. Operating profit is expected to be ¥100 billion driven by cost reduction in office printing and growth in office services.
 

Price and Consensus

This company is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of -200%. Revenues are expected to be $4.4 billion, down 6.9% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Ricoh Co., the consensus EPS estimate for the quarter has been revised 21.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on RICOY going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>