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Why the Earnings Streak Will Continue for Hancock Holding Company (HBHC)

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Looking for a stock that might be in a good position to beat earnings at its next report? Consider Hancock Holding Company , a firm in the Banks-Southeast 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, HBHChas beaten estimates by at least 30% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, HBHC expected to post earnings of 5 cents per share, while it actually produced earnings of 9 cents per share, a beat of 80.0%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 44 cents per share, when it actually delivered earnings of 59 cents per share instead, representing a 34.1% positive surprise.

HANCOCK HLDG CO Price and EPS Surprise

 

HANCOCK HLDG CO Price and EPS Surprise | HANCOCK HLDG CO Quote

Thanks in part to this history, recent estimates have been moving higher for Hancock Holding Company. In fact, the Earnings ESP for HBHC 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 HBHCas the firm currently has a Zacks Earnings ESP of 1.72%, so another beat could be around the corner.

This is particularly true when you consider that HBHChas a great Zacks Rank #1(Strong 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 HBHCcould see another beat at its next report, especially if recent trends are any guide.

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