Why Corteva, Inc. (CTVA) is Poised to Beat Earnings Estimates Again

Core Insights - Corteva, Inc. is positioned to continue its earnings-beat streak, particularly in the upcoming earnings report, supported by a strong history of exceeding earnings estimates [1][5] - The company reported earnings of $2.20 per share for the most recent quarter, surpassing the expected $1.89 per share, resulting in a surprise of 16.40% [2] - For the previous quarter, Corteva exceeded the consensus estimate of $0.87 per share by reporting $1.13 per share, achieving a surprise of 29.89% [2] Earnings Estimates and Predictions - Estimates for Corteva have been trending higher, influenced by its history of earnings surprises, with a current Earnings ESP of +1.47%, indicating bullish sentiment among analysts [5][8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high probability of another earnings beat, with historical data showing that such combinations lead to positive surprises 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 are often more accurate [7] - A negative Earnings ESP does not necessarily indicate an earnings miss but can reduce the predictive power of the metric [9] Importance of Earnings ESP - While many companies beat consensus EPS estimates, this alone may not drive stock price increases; thus, checking a company's Earnings ESP prior to quarterly releases is crucial for investment decisions [10]