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Tale of the Tape

Zacks Equity Research

Why NuVasive (NUVA) is Poised to Beat Earnings Estimates (Again)
October 13, 2016

NUVA

Trades from $3

Looking for a stock that might be in a good position to beat earnings at its next report? Consider NuVasive, Inc. (NUVA - Free Report) , a firm in the Medical Products 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, NUVA 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, NUVA expected to post earnings of 27 cents per share, while it actually produced earnings of 32 cents per share, a beat of 18.5%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 36 cents per share, when it actually posted earnings of 40 cents per share instead, representing a 11.1% positive surprise. 

NUVASIVE INC Price and EPS Surprise

 

NUVASIVE INC Price and EPS Surprise | NUVASIVE INC Quote

Thanks in part to this history, recent estimates have been moving higher for NuVasive. In fact, the Earnings ESP for NUVA 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 NUVA, as the firm currently has a Zacks Earnings ESP of 2.44%, so another beat could be around the corner.

This is particularly true when you consider that NUVA 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 (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 NUVA could see another beat at its next report, especially if recent trends are any guide. 

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