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Will RetailMeNot (SALE) Crush Estimates at Its Next Earnings Report?

Looking for a stock that might be in a good position to beat earnings at its next report? Consider RetailMeNot, Inc. SALE, a firm in the Internet Services-Delivery 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, SALE has beaten estimates by at least 40% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, SALE expected to post a loss of 6 cents per share, while it actually produced earnings of 5 cents per share, a significant beat. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 20 cents per share, when it actually produced earnings of 28 cents per share instead, representing a 40.0% surprise.

Thanks in part to this history, recent estimates have been moving higher for RetailMeNot. In fact, the Earnings ESP for SALE 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 SALE as the firm currently has a Zacks Earnings ESP of 33.33%, so another beat could be around the corner.

This is particularly true when you consider that SALE has a great Zacks Rank #2 (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 SALE could see another beat at its next report, especially if recent trends are any guide.

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RETAILMENOT INC (SALE): Free Stock Analysis Report
 
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