Why Ducommun (DCO) is Poised to Beat Earnings Estimates Again

Core Viewpoint - Ducommun (DCO) is positioned to continue its earnings-beat streak, particularly in the aerospace and defense equipment industry, with a notable average surprise of 42.03% over the past two quarters [1][3]. Earnings Performance - In the most recent quarter, Ducommun reported earnings of $0.99 per share, exceeding the expected$0.65 per share, resulting in a surprise of 52.31% [2]. - For the previous quarter, the company reported $0.83 per share against an expectation of$0.63 per share, leading to a surprise of 31.75% [2]. Earnings Estimates and Predictions - Estimates for Ducommun have been trending higher due to its history of earnings surprises, with a current Earnings ESP of +23.74%, indicating increased analyst optimism regarding its near-term earnings potential [3][6]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong likelihood of another earnings beat [6]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better achieve a positive surprise nearly 70% of the time, implying a high probability of beating consensus estimates [4]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [5].