Stem, Inc. (STEM) Expected to Beat Earnings Estimates: What to Know Ahead of Q3 Release

Core Viewpoint - Stem, Inc. (STEM) is anticipated to report a year-over-year decline in earnings due to lower revenues, with the upcoming earnings report expected on October 30 [1][2]. Financial Expectations - The consensus estimate predicts a quarterly loss of $0.19 per share, reflecting an 11.8% decrease year-over-year [2]. - Revenues are projected to be $118.25 million, down 11.6% from the same quarter last year [2]. Estimate Revisions - The consensus EPS estimate has been revised 10% lower in the last 30 days, indicating a reassessment by analysts [3]. - The Most Accurate Estimate for Stem is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.72%, suggesting a bullish outlook from analysts [6]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [5]. - Stem currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [6]. Historical Performance - In the last reported quarter, Stem was expected to post a loss of $0.23 per share but actually reported a loss of $0.22, resulting in a surprise of +4.35% [7]. - Over the past four quarters, Stem has beaten consensus EPS estimates two times [7]. Industry Comparison - Check Point Software (CHKP), another player in the Computers - IT Services industry, is expected to report earnings of $2.25 per share, reflecting an 8.7% year-over-year increase, with revenues projected at $635.43 million, up 6.6% [9]. - Check Point has maintained its consensus EPS estimate over the last 30 days and has an Earnings ESP of 1.26%, indicating a likelihood of beating the consensus EPS estimate [9].