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Tale of the Tape

Zacks Equity Research

Why Teck Resources (TCK) Could Beat Earnings Estimates Again
October 13, 2016

TCK

Trades from $3

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Teck Resources Limited (TCK - Free Report) , a firm in the Mining-Miscellaneous 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, TCK has beaten estimates by at least 100% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, TCK was expected to post a loss of 6 cents per share, while it actually reported earnings of 2 cents per share, a significant beat. Meanwhile, for the most recent quarter, the company looked to deliver a loss of 1 cent per share, when it actually saw break even earnings per share instead, representing a 100% positive surprise.

TECK RESOURCES Price and EPS Surprise

TECK RESOURCES Price and EPS Surprise | TECK RESOURCES Quote

Thanks in part to this history, recent estimates have been moving higher for Teck Resources. In fact, the Earnings ESP for TCK 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 TCK, as the firm currently has a Zacks Earnings ESP of 5.00%, so another beat could be around the corner.

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

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