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Why the Earnings Streak Will Continue for ACADIA Pharmaceuticals (ACAD)

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Looking for a stock that might be in a good position to beat earnings at its next report? Consider ACADIA Pharmaceuticals Inc. (ACAD - Free Report) , a firm in the Medical - Biomedical and Genetics industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, ACAD has beaten estimates by at least 15% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, ACAD was expected to post a loss of 71 cents per share, while it actually produced a loss of 55 cents per share, a beat of 22.5%. Meanwhile, for the most recent quarter, the company looked to deliver a loss of 63 cents per share, when it actually saw a loss of 53 cents per share instead, representing a 15.9% positive surprise.

Thanks in part to this history, recent estimates have been moving higher for ACADIA Pharmaceuticals. In fact, the Earnings ESP for ACAD is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for ACAD, as the firm currently has a Zacks Earnings ESP of 4.03%, so another beat could be around the corner.

This is particularly true when you consider that ACAD has a great Zacks Rank #2 (Buy), which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that ACAD could see another beat at its next report, especially if recent trends are any guide.

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