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Why the Earnings Streak Will Continue for Kronos (KRO)

Zacks

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Kronos Worldwide, Inc. KRO, a firm in the Chemical – Diversified 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, KRO has beaten estimates by at least 45% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, KRO expected to post earnings of 6 cents per share, while it actually produced earnings of 16 cents per share, a beat of 166.7%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 22 cents per share, when it actually saw earnings of 32 cents per share instead, representing a 45.5% positive surprise.


Kronos Worldwide Inc Price, Consensus and EPS Surprise

Kronos Worldwide Inc Price, Consensus and EPS Surprise | Kronos Worldwide Inc Quote

Thanks in part to this history, recent estimates have been moving higher for Kronos. In fact, the Earnings ESP for KRO 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 KRO, as the firm currently has a Zacks Earnings ESP of +14.71%, so another beat could be around the corner.

This is particularly true when you consider that KRO has a great Zacks Rank #1 (Strong 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 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 KRO could see another beat at its next report, especially if recent trends are any guide.

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