Why Goosehead (GSHD) Could Beat Earnings Estimates Again

Core Viewpoint - Goosehead Insurance (GSHD) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, supported by a strong history of exceeding expectations [1][2]. Earnings Performance - Goosehead has a solid track record of surpassing earnings estimates, with an average surprise of 50.69% over the last two quarters [2]. - In the most recent quarter, the company reported earnings of $0.79 per share, exceeding the expected$0.41 per share, resulting in a surprise of 92.68% [2]. - For the previous quarter, Goosehead's actual earnings were $0.50 per share against an estimate of$0.46 per share, leading to a surprise of 8.70% [2]. Earnings Estimates and Predictions - There has been a favorable adjustment in earnings estimates for Goosehead, indicated by a positive Zacks Earnings ESP (Expected Surprise Prediction) [5]. - The current Earnings ESP for Goosehead is +4.35%, suggesting that analysts have recently become more optimistic about the company's earnings prospects [8]. - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6]. Importance of Earnings ESP - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7]. - A positive Earnings ESP combined with a solid Zacks Rank indicates a higher likelihood of an earnings beat [8]. - It is crucial for investors to check a company's Earnings ESP before quarterly releases to enhance the chances of successful investment decisions [10].