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Tale of the Tape

Zacks Equity Research

Will Casella Waste Systems (CWST) Crush Estimates at Its Next Earnings Report?
October 18, 2016

CWST

Trades from $3

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Casella Waste Systems Inc. (CWST - Free Report) , a firm in the Pollution Control 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, CWST 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, CWST expected to post a loss of 24 cents per share, while it actually produced a loss of 19 cents per share, a beat of 20.8%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 5 cents per share, when it actually saw earnings of 13 cents per share instead, representing a 160% positive surprise.

CASELLA WASTE Price and EPS Surprise
 

CASELLA WASTE Price and EPS Surprise | CASELLA WASTE Quote

Thanks in part to this history, recent estimates have been moving higher for Casella Waste Systems. In fact, the Earnings ESP for CWST 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 CWST, as the firm currently has a Zacks Earnings ESP of 90.00%, so another beat could be around the corner.

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

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