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Why the Earnings Streak Will Continue for Fairmount Santrol (FMSA)


Looking for a stock that might be in a good position to beat earnings at its next report? Consider Fairmount Santrol Holdings Inc. FMSA, a firm in the Metal Products – Fasteners space, 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, FMSA 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, FMSA expected to post a loss of 12 cents per share, while it actually produced a loss of 7 cents per share, a beat of 41.7%. Meanwhile, for the most recent quarter, the company looked to deliver a loss of 17 cents per share, when it actually produced a loss of 11 cents per share, a beat of 35.3%.

Thanks in part to this history, recent estimates have been moving higher for Fairmount Santrol. In fact, the Earnings ESPfor FMSA is positive, which is a great sign of a coming beat.

FAIRMOUNT SNTRL Price and EPS Surprise

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 FMSA, as the firm currently has a Zacks Earnings ESP of 30.77%, so another beat could be around the corner.

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

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