Will Certara (CERT) Beat Estimates Again in Its Next Earnings Report?

Core Insights - Certara, Inc. is positioned to potentially continue its earnings-beat streak in the upcoming report, having surpassed earnings estimates by an average of 11.54% in the last two quarters [1][2]. Earnings Performance - In the last reported quarter, Certara achieved earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of $0.13 per share, resulting in a surprise of 7.69% [2]. - In the previous quarter, the company was expected to post earnings of $0.13 per share but delivered $0.15 per share, leading to a surprise of 15.38% [2]. Earnings Estimates and Predictions - Recent estimates for Certara have been trending upward, with a positive Earnings ESP of +2.44%, indicating increased analyst optimism regarding the company's earnings prospects [5][8]. - 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 showing that stocks with this combination beat estimates nearly 70% of the time [6][8]. Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions, which may be more accurate [7]. - A negative Earnings ESP can reduce the predictive power of the metric, but it does not necessarily indicate an earnings miss [9]. Importance of Earnings ESP - Many companies beat consensus EPS estimates, but this is not the sole reason for share price gains; thus, checking a company's Earnings ESP before quarterly releases is crucial for investment decisions [10].