Thomson Reuters Corporation (TRI), provider of information related to financial & risk, legal, tax & accounting, and intellectual property & science, is expected to report its fourth-quarter 2014 results on Feb 11, before the opening bell. In the last quarter, the company’s earnings of 45 cents a share were in line with the Zacks Consensus Estimate. Let’s see how things are shaping up for this announcement.
Factors Influencing this Quarter
Management through top-line growth, cost containment and share buyback strategies remains focused on augmenting its bottom line performance. However, analysts find the prevailing macroeconomic scenario a hurdle that may weigh upon the performance of the Financial and Risk and Legal segments.
Earnings Whispers
Our proven model does not conclusively show that Thomson Reuters is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is currently pegged at 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate both stand at 48 cents.
Zacks Rank: Thomson Reuters carries a Zacks Rank #3 (Hold). Though a Zacks Rank #3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks that Warrant a Look
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
The Kroger Co. (KR) has an Earnings ESP of +4.49% and a Zacks Rank #2 (Buy).
J. C. Penney Company Inc. (JCP) has an Earnings ESP of +115.39% and a Zacks Rank #2.
Ross Stores Inc. (ROST) has an Earnings ESP of +2.70% and a Zacks Rank #2.
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