Why SM Energy (SM) is Poised to Beat Earnings Estimates Again

Core Insights - SM Energy is well-positioned to continue its earnings-beat streak, having a history of exceeding earnings estimates, particularly in the last two quarters with an average surprise of 12.21% [1][3] Earnings Performance - For the last reported quarter, SM Energy achieved earnings of $1.62 per share, surpassing the Zacks Consensus Estimate of$1.52 per share, resulting in a surprise of 6.58% [2] - In the previous quarter, the company reported earnings of $1.85 per share against an expectation of$1.57 per share, delivering a surprise of 17.83% [2] Earnings Estimates - Recent estimates for SM Energy have been trending upward, with a positive Earnings ESP of +0.36%, indicating increased analyst optimism regarding the company's earnings prospects [3][6] - The combination of a positive Earnings ESP and a Zacks Rank 1 (Strong Buy) suggests a high likelihood of another earnings beat in the upcoming report [6] Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced a positive surprise nearly 70% of the time, indicating a strong predictive power for earnings performance [4][5] - 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]