Why BCE (BCE) is Poised to Beat Earnings Estimates Again

Core Viewpoint - BCE is positioned well to continue its trend of beating earnings estimates, supported by a strong history of performance in the telecommunications industry [1][2]. Group 1: Earnings Performance - BCE has consistently surpassed earnings estimates, achieving an average beat of 10.55% over the last two quarters [2]. - In the most recent quarter, BCE reported earnings of $0.44 per share against an expectation of $0.48, resulting in a surprise of 9.09% [3]. - For the previous quarter, BCE exceeded the consensus estimate of $0.50 per share by reporting $0.56, marking a surprise of 12.00% [3]. Group 2: Earnings Estimates and Predictions - There has been a favorable adjustment in earnings estimates for BCE, with a positive Earnings ESP (Expected Surprise Prediction) indicating potential for another earnings beat [6]. - BCE currently has an Earnings ESP of +3.52%, reflecting increased analyst optimism regarding its near-term earnings potential [9]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data indicating that nearly 70% of stocks with this combination achieve positive surprises [7][9]. Group 3: Importance of Earnings ESP - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate being more reflective of recent analyst revisions [8]. - A negative Earnings ESP can diminish predictive power but does not necessarily indicate an earnings miss [10]. - Utilizing the Earnings ESP metric is crucial for identifying stocks with a higher probability of beating consensus estimates prior to earnings releases [11].