Earnings season can be hard for traders as they try to game who will beat or miss Wall Street estimates.
But one company is making it look easy.
Business communications company LogMeIn has reported earnings per share higher than the consensus Wall Street estimate every quarter for the last 8 years, according to research firm Bespoke Investment Group. That’s 32 quarters in a row.
And yet this incredible track record of surprises does not seem to be yet priced in.
The shares averaged a nearly 6 percent pop, on average, the day after its earnings report for the last eight years, according to Bespoke.
The business, known for its service of providing remote access to computers, is expected to report third-quarter EPS of $1.10, according to Estimize. Regular traders and investors polled by Estimize believe the company will surprise once again, with earnings per share of $1.12.
To be sure, LogMeIn’s impressive track record of beating the Street for more than half of the company’s 14-year existence may raise the eyebrows of some skeptics.
One would think Wall Street would take a hint and raise their EPS by a penny or two after the company beats estimates for 32 quarters straight.
But going by the stock’s reaction, the market is still willing to reward this “surprise.”