Rowan Companies PLC (RDC.N), provider of international and domestic offshore contract drilling services, reports third quarter earnings tomorrow (11/05) at 4:00 PM. The I/B/E/S consensus is for earnings of 41 cents per share. The StarMine SmartEstimate, which puts more weight on the more accurate analysts and the most recent estimates, is lower at 37 cents per share for a negative Predicted Surprise of just over 10%.
Historically, when the Predicted Surprise is greater than 2%, the consensus estimate moves in the direction of the SmartEstimate, or the company beats or misses estimates as predicted by the SmartEstimate in 70% of the cases. Further, there are three Bold Estimates which are more than 15 % below the consensus. A Bold Estimate represents an estimate that varies greatly from the mean by an analyst rated 5-stars (the highest possible rating) by StarMine for past accuracy. One might want to pay more attention to these estimates. These factors may be an early indicator of an earnings beat from Rowan Companies tomorrow.
View Sri Raman on FOX Business to learn more about the earnings trends to watch this season. Click here to watch.
SMARTESTIMATES AND THE PREDICTED SURPRISE %
SmartEstimates: StarMine Professional quantitatively analyzes the earnings estimate accuracy of sell-side analysts and uses this information to create proprietary
SmartEstimates®.SmartEstimates help you better predict future earnings and analyst revisions with estimates that place more weight on recent forecasts by top-rated analysts.
Predicted Surprise %: The Predicted Surprise% is the percentage difference between the SmartEstimate and the I/B/E/S consensus estimate. When SmartEstimates diverge significantly from consensus, it serves as a leading indicator of the direction of future revisions and/or surprises. In aggregate, this indicator gets earnings surprises directionally correct 70% of the time.
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