Will Crescent Energy (CRGY) Beat Estimates Again in Its Next Earnings Report?

If you're looking for a stock with the potential to continue its streak of exceeding earnings estimates, you might want to take a closer look at Crescent Energy (CRGY). This company operates in the oil and gas sector and is part of the Zacks Alternative Energy - Other industry.

Crescent Energy has established a strong record of beating earnings estimates, particularly highlighted by its performance over the last two quarters. The company achieved an impressive average surprise of 87.39% in those quarters.

In its most recent quarter, Crescent Energy reported earnings of $0.31 per share, which surpassed the Zacks Consensus Estimate of $0.26. This result yielded a positive surprise of 19.23%. Furthermore, in the quarter prior, analysts had predicted earnings of $0.18 per share, but the company delivered an actual earnings figure of $0.46, resulting in a remarkable surprise of 155.56%.

Due to this consistent performance, earnings estimates for Crescent Energy have been on the rise. The positive trend can be partly attributed to its history of exceeding expectations. Furthermore, the company has a positive Zacks Earnings ESP (Expected Surprise Prediction), which is an encouraging sign for its upcoming earnings report.

Research indicates that stocks possessing a combination of a positive Earnings ESP and at least a Zacks Rank #3 (Hold) have a success rate of nearly 70% in delivering positive surprises. This means that if you select ten stocks that fit this profile, about seven of them are likely to surpass the consensus earnings estimate.

The Zacks Earnings ESP is determined by comparing the Most Accurate Estimate with the Zacks Consensus Estimate for the quarter. Essentially, the Most Accurate Estimate reflects the latest information from analysts, which can often be more reliable than prior estimates that contributed to the consensus.

Currently, Crescent Energy holds an Earnings ESP of +6.12%. This suggests that analysts have recently become optimistic regarding the company's earnings outlook. When combined with its Zacks Rank of #3 (Hold), this indicates that another earnings beat might be just around the corner.

It is important for investors to note that a negative Earnings ESP does not always indicate a forthcoming earnings miss, but it does reduce the predictive strength of this figure.

While many companies are able to exceed the consensus EPS estimate, this is not the sole factor that influences their stock price movement. Conversely, some stocks may remain stable even after missing earnings targets. Therefore, it is critical to check a company’s Earnings ESP in advance of its quarterly report to boost your chances of achieving successful investments. Utilizing an Earnings ESP Filter can help you identify the best stocks to consider buying or selling ahead of their earnings announcement.

Earnings, Estimates, Stocks