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Why Midcoast Energy Partners (MEP) Could Beat Earnings Estimates Again

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Midcoast Energy Partners, L.P. MEP, a firm in the Oil Refining & Marketing MLP 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, MEP has beaten estimates by at least 65% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, MEP expected to post a loss of 15 cents per share, while it actually produced a loss of 4 cents per share, a beat of 73.3%. Meanwhile, for the most recent quarter, the company looked to deliver a loss of 39 cents per share, when it actually delivered a loss of 12 cents per share instead, representing a 69.2% surprise.

Thanks in part to this history, recent estimates have been moving higher for Midcoast Energy Partners. In fact, the Earnings ESP for MEP 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 MEP as the firm currently has a Zacks Earnings ESP of 64.91%, so another beat could be around the corner.

This is particularly true when you consider that MEP 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% of the time, so it seems pretty likely that MEP could see another beat at its next report, especially if recent trends are any guide.

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MIDCOAST EN PTN (MEP): Free Stock Analysis Report
 
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