Why Advanced Energy Industries (AEIS) is Poised to Beat Earnings Estimates (Again)

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Advanced Energy Industries, Inc. (AEIS), a firm in the Diversified Electronics 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, AEIS has beaten estimates by at least 15% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, AEIS expected to earn 34 cents per share, while it actually produced earnings of 44 cents per share, a beat of 29.4%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 48 cents per share, when it actually saw earnings of 57 cents per share instead, representing an 18.8% positive surprise.

Thanks in part to this history, recent estimates have been moving higher for Advanced Energy. In fact, the Earnings ESP for AEIS 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 AEIS, as the firm currently has a Zacks Earnings ESP of 10.00%, so another beat could be around the corner.

This is particularly true when you consider that AEIS has a great Zacks Rank #1 (Strong Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. And when you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70%, so it seems pretty likely that AEIS could see another beat at its next report, especially if recent trends are any guide.

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Advanced Energy Industries (NASDAQ:AEIS)
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