Why Acadia (ACAD) is Poised to Beat Earnings Estimates Again

Core Insights - Acadia Pharmaceuticals has a strong track record of exceeding earnings estimates, particularly in the last two quarters, with an average surprise of 50.00% [1] - The company reported earnings of $0.26 per share for the most recent quarter, surpassing the expected $0.14 per share by 85.71% [2] - For the previous quarter, Acadia's earnings were $0.16 per share against an estimate of $0.14 per share, resulting in a surprise of 14.29% [2] Earnings Estimates and Predictions - Recent estimates for Acadia have been increasing, with a positive Earnings ESP of +14.92%, indicating bullish sentiment among analysts 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 [8] - Historically, stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6] 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 [7] - A positive Earnings ESP indicates that analysts have updated their estimates favorably just before the earnings release, which may lead to more accurate predictions [7] - A negative Earnings ESP can diminish the predictive power of the metric, but it does not necessarily indicate an earnings miss [8]