Over the last four quarters, the company has beaten consensus EPS estimates three times.Īn earnings beat or miss may not be the sole basis for a stock moving higher or lower. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.įor the last reported quarter, it was expected that Chesapeake would post earnings of $0.15 per share when it actually produced earnings of $0.14, delivering a surprise of -6.67%.
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, this combination makes it difficult to conclusively predict that Chesapeake will beat the consensus EPS estimate.ĭoes Earnings Surprise History Hold Any Clue? On the other hand, the stock currently carries a Zacks Rank of #4.
This has resulted in an Earnings ESP of -37.60%. How Have the Numbers Shaped Up for Chesapeake?įor Chesapeake, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). Please note that a negative Earnings ESP reading is not indicative of an earnings miss.
Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. However, the model's predictive power is significant for positive ESP readings only.Ī positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate.
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