United Therapeutics (UTHR) Expected to Beat Earnings Estimates: Can the Stock Move Higher?

The market expects United Therapeutics (UTHR) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2019.

This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

This drugmaker is expected to post quarterly earnings of $2.64 per share in its upcoming report, which represents a year-over-year change of -29.8%.

Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out.

The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

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