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Will Chegg (CHGG) Crush Estimates at Its Next Earnings Report?

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Looking for a stock that might be in a good position to beat earnings at its next report? Consider Chegg, Inc. (CHGG - Free Report) , a firm in the Internet Software space, 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, CHGG 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, CHGG expected to post a loss of 9 cents per share, while it actually produced a loss of 8 cents per share, a beat of 11.1%. Meanwhile, for the most recent quarter, the company looked to deliver a loss of 17 cents per share, when it actually produced a loss of 13 cents per share, a beat of 23.5%.

Thanks in part to this history, recent estimates have been moving higher for Chegg. In fact, the Earnings ESP for CHGG is positive, which is a great sign of a coming beat.

CHEGG INC Price and EPS Surprise

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 CHGG, as the firm currently has a Zacks Earnings ESP of 100.00%, so another beat could be around the corner.

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

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