Why The Earnings Streak Will Continue For Independence Contract Drilling (ICD)

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Independence Contract Drilling, Inc. (NYSE:ICD) , a firm in the Oil and Gas Drilling 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, ICD has beaten estimates by at least 35% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, ICD expected to post a loss of 7 cents per share, while it actually produced a loss of 2 cents per share, a beat of 71.4%. Meanwhile, for the most recent quarter, the company looked to deliver a loss of 11 cents per share, when it actually produced a loss of 7 cents per share, representing a 36.7% positive surprise.

INDEPENDC CONTR Price and EPS Surprise

INDEPENDC CONTR Price and EPS Surprise | INDEPENDC CONTR Quote

Thanks in part to this history, recent estimates have been moving higher for Independence Contract Drilling. In fact, the Earnings ESPfor ICD 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 ICD, as the firm currently has a Zacks Earnings ESP of 18.18%, so another beat could be around the corner.

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

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