Back to top

Why Ingram Micro (IM) is Poised to Beat Earnings Estimates (Again)

Read MoreHide Full Article

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Ingram Micro Inc. , a firm in the Retail - Computer Hardware 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, IM 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, IM was expected to post earnings of 49 cents per share, while it actually produced earnings of 61 cents per share, a beat of 24.5%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 63 cents per share, when it actually saw earnings per share of 71 cents instead, representing a 12.7% positive surprise.

INGRAM MICRO Price and EPS Surprise

INGRAM MICRO Price and EPS Surprise | INGRAM MICRO Quote

Thanks in part to this history, recent estimates have been moving higher for Ingram Micro. In fact, the Earnings ESP for IM 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 IM, as the firm currently has a Zacks Earnings ESP of 0.94%, so another beat could be around the corner.

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

Zacks' Top Investment Ideas for Long-Term Profit

How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>

Normally $25 each - click below to receive one report FREE:

More from Zacks Tale of the Tape

You May Like