Why Bright Horizons (BFAM) is Poised to Beat Earnings Estimates Again

Core Insights - Bright Horizons Family Solutions (BFAM) is positioned to potentially continue its earnings-beat streak in upcoming reports, with a history of surpassing earnings estimates, particularly in the last two quarters, averaging a surprise of 14.96% [1][5] Earnings Performance - For the most recent quarter, Bright Horizons reported earnings of $0.63 per share against an expectation of $0.77 per share, resulting in a surprise of 22.22%. In the previous quarter, the company exceeded the consensus estimate of $0.91 per share by reporting $0.98 per share, achieving a surprise of 7.69% [2] Earnings Estimates and Predictions - Recent estimates for Bright Horizons have been trending upward, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat, especially when combined with its Zacks Rank [5][8] - The Zacks Earnings ESP currently stands at +0.50%, reflecting increased analyst optimism regarding the company's near-term earnings potential [8] Statistical Insights - Research indicates that 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, suggesting that out of 10 such stocks, approximately seven may beat consensus estimates [6][8]