Why Deutsche Bank (DB) is Poised to Beat Earnings Estimates Again

Core Viewpoint - Deutsche Bank is positioned well to continue its trend of beating earnings estimates, with a strong history of surpassing expectations in recent quarters [1][2]. Earnings Performance - Deutsche Bank has exceeded earnings estimates by an average of 54.84% over the last two quarters [1]. - In the most recent quarter, the bank reported earnings of $0.72 per share, surpassing the expected $0.37 per share by 94.59% [1]. - For the previous quarter, Deutsche Bank's earnings of $0.61 per share exceeded the consensus estimate of $0.53 per share, resulting in a surprise of 15.09% [1]. Earnings Estimates and Predictions - Estimates for Deutsche Bank have been trending higher, influenced by its history of earnings surprises [2]. - The stock has a positive Zacks Earnings ESP of +5.26%, indicating that analysts have recently become more optimistic about the company's earnings prospects [3]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat [2][3]. Importance of Earnings ESP - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [3]. - A positive Earnings ESP enhances the predictive power of earnings estimates, while a negative value does not necessarily indicate an earnings miss [3]. Stock Movement Considerations - Beating consensus EPS estimates is not the only factor influencing stock price movements; some stocks may remain stable even if they miss estimates [4]. - Utilizing the Earnings ESP Filter can help identify the best stocks to buy or sell prior to earnings reports [4].