Primo Brands (PRMB) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Primo Brands, driven by higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Primo Brands is expected to report quarterly earnings of $0.43 per share, reflecting a year-over-year increase of +65.4% [3]. - Revenues are projected to reach $1.8 billion, representing a significant increase of 271.2% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate for Primo Brands has been revised 0.21% higher in the last 30 days, indicating a slight positive reassessment by analysts [4]. - However, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -4.12%, suggesting a bearish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a strong predictive power for positive readings [9][10]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically shown a positive surprise rate of nearly 70% [10]. Historical Performance - In the last reported quarter, Primo Brands exceeded the expected earnings of $0.24 per share by delivering $0.29, resulting in a surprise of +20.83% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Industry Comparison - Another player in the beverage industry, Monster Beverage, is expected to report earnings of $0.48 per share, reflecting a year-over-year change of +17.1%, with revenues projected at $2.08 billion, up 9.6% [18][19]. - Monster Beverage's consensus EPS estimate has been revised down by 1.1% in the last 30 days, resulting in an Earnings ESP of -1.72% [19][20].