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Why Rice Midstream (RMP) Could Beat Earnings Estimates Again

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Looking for a stock that might be in a good position to beat earnings at its next report? Consider Rice Midstream Partners LP , a firm in the Zacks Oil and Gas - Exploration and Production - United States 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, RMP has beaten estimates by at least 25% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, RMP expected to post earnings of 33 cents per share, while it actually produced earnings of 42 cents per share, a beat of 27.3%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 37 cents per share, when it actually delivered earnings of 48 cents per share, representing 29.7% positive surprise.

Rice Midstream Partners LP Price and EPS Surprise

Thanks in part to this history, recent estimates have been moving higher for Rice Midstream. In fact, the Earnings ESP for RMP 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 RMP, as the firm currently has a Zacks Earnings ESP of +10.26%, so another beat could be around the corner.

This is particularly true when you consider that RMP 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 surprise happens nearly 70% of the time, so it seems pretty likely that RMP could see another beat at its next report, especially if recent trends are any guide.

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