Why SPS Commerce (SPSC) is Poised to Beat Earnings Estimates Again

Core Insights - SPS Commerce has a strong track record of exceeding earnings estimates, particularly in the last two quarters, with an average surprise of 10.67% [2][6] - The company reported earnings of $1 per share in the last quarter, surpassing the Zacks Consensus Estimate of $0.84 per share by 19.05% [3] - For the previous quarter, SPS Commerce's earnings were $0.89 per share against an expectation of $0.87, resulting in a surprise of 2.30% [3] Earnings Estimates and Predictions - Estimates for SPS Commerce have been increasing, driven by its history of earnings surprises [6] - The stock has a positive Zacks Earnings ESP of +0.89%, indicating bullish sentiment among analysts regarding its earnings prospects [9] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat in the upcoming report [9] Earnings ESP and Market Behavior - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [7] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [8] - It is crucial for investors to check a company's Earnings ESP before quarterly releases to enhance the probability of successful investment decisions [11]