Viacom Inc. VIAB is set to release second-quarter 2015 results before the opening bell on Apr 30.
In the last quarter, the company posted a 0.00% earnings surprise. Let’s see how things are shaping up for this announcement.
Factors at Play
The cable TV industry in the U.S. is highly matured and saturated. Viacom’s flagship cable channels are already distributed and therefore chances are much limited to increase revenue by enlarging distribution channels.
In addition, an enhanced geographic presence will further lead to foreign currency exchange rate risks for Viacom. Moreover, mounting programming expenses may further impact margins while moving ahead.
Earnings Whispers
Our proven model does not conclusively show that Viacom is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: The Earnings ESP for the company currently stands at -0.94% as the Most Accurate estimate is pegged at $1.06 while the Zacks Consensus Estimate is a penny higher at $1.07.
Zacks Rank: Viacom carries a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s negative ESP makes surprise prediction difficult.
Please note that Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.
Stocks to Consider
Here are some companies you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter.
Groupon, Inc. GRPN with an Earnings ESP of +50.00% and a Zacks Rank #1.
Twenty-First Century Fox, Inc. FOXA with an Earnings ESP of +2.56% and a Zacks Rank #3.
Facebook, Inc. FB with an Earnings ESP of +3.33% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment