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Tale of the Tape

Zacks Equity Research

Why Vocera Communications (VCRA) Could Beat Earnings Estimates Again
October 04, 2016


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Looking for a stock that might be in a good position to beat earnings at its next report? Consider Vocera Communications, Inc. (VCRA - Snapshot Report) , a firm in the Communications Component 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, VCRA has beaten estimates by at least 20% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, VCRA expected to post a loss of 17 cents per share, while it actually produced a loss of 13 cents per share, a beat of 23.5%. Meanwhile, for the most recent quarter, the company looked to deliver a loss of 14 cents per share, when it actually saw loss of 9 cents per share instead, representing a 35.7% positive surprise.

VOCERA COMM INC Price and EPS Surprise


Thanks in part to this history, recent estimates have been moving higher for Vocera Communications. In fact, the Earnings ESP for VCRA 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 VCRA, as the firm currently has a Zacks Earnings ESP of 20.00%, so another beat could be around the corner.

This is particularly true when you consider that VCRA has a great Zacks Rank #2 (Strong 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 (Strong Buy) 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 VCRA could see another beat at its next report, especially if recent trends are any guide.

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