Aspen Aerogels (ASPN) Expected to Beat Earnings Estimates: Should You Buy?

Core Viewpoint - Aspen Aerogels (ASPN) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the earnings report expected on February 12, 2024 [1][2]. Financial Expectations - The consensus estimate predicts a quarterly loss of $0.12 per share, reflecting a year-over-year improvement of +40% [2]. - Revenues are projected to reach $83.82 million, marking a 40.6% increase compared to the same quarter last year [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 80% over the last 30 days, indicating a significant reassessment by analysts [2]. - The Most Accurate Estimate for Aspen Aerogels is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +4.35% [5]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [4]. - Aspen Aerogels currently holds a Zacks Rank of 3, suggesting a likelihood of beating the consensus EPS estimate [5][6]. Historical Performance - In the last reported quarter, Aspen Aerogels was expected to post a loss of $0.29 per share but actually reported a loss of $0.19, resulting in a surprise of +34.48% [7]. - The company has successfully beaten consensus EPS estimates in all of the last four quarters [7]. Industry Comparison - Masco (MAS), another player in the building products industry, is expected to report earnings of $0.66 per share, reflecting a year-over-year change of +1.5%, with revenues expected to decline by 7.7% to $1.77 billion [9]. - Masco's consensus EPS estimate has been revised 0.6% higher, but its Earnings ESP is -1.25%, combined with a Zacks Rank of 4, indicating challenges in predicting an earnings beat [9].