We expect Twenty-First Century Fox, Inc. FOXA to beat estimates when it reports third-quarter fiscal 2015 results on May 6. In the last quarter, it had posted a positive earnings surprise of 29.3%. Let’s see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that Twenty-First Century Fox is likely to beat earnings estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. Twenty-First Century Fox has the right combination of the two key components.
Zacks ESP: Twenty-First Century Fox currently has an Earnings ESP of +2.56%. This is because the Most Accurate estimate stands at 40 cents, while the Zacks Consensus Estimate is pegged at 39 cents.
Zacks Rank: Twenty-First Century Fox carries a Zacks Rank #3 (Hold). Conversely, the Sell-rated stocks (Rank #4 and 5) should never be considered going into an earnings announcement.
Twenty-First Century Fox’s Zacks Rank #3 and positive ESP of make us reasonably confident of an earnings beat.
What's Driving Better-than-Expected Earnings?
Continued rise in affiliate fees along with good run at the box office have helped the company to post better-than-expected earnings in the last few quarters. Moreover, the company has been investing in new programming to drive up revenues at its Television segment.
In the trailing four quarters, the company has beaten the Zacks Consensus Estimate by an average of 19.9%.
Stocks to Consider
Here are some other companies you may want to consider as our model shows these have the right combination of elements to post an earnings beat:
Jack in the Box Inc. JACK has an Earnings ESP of +1.52% and a Zacks Rank #3.
Kate Spade & Co. KATE has an Earnings ESP of +150.0% and a Zacks Rank #3.
Treehouse Foods, Inc. THS has an Earnings ESP of +1.72% and a Zacks Rank #3.
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