Media giant, CBS Corporation CBS, is set to report its second-quarter 2015 results on Aug 5. Last quarter, it posted a positive earnings surprise of 4%. Let us see how things are developing for this announcement.
Factors at Play
Analysts observe that CBS Corp might face lower advertising revenues in the quarter under review given soft ratings trends at CBS Network, Local TV and CBS Radio. Moreover, lesser number of titles available for syndication will drag down content licensing revenues. Currency headwinds will add to the company's woes as well.
Earnings Whispers
Our proven model does not conclusively project CBS Corp as likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and Zacks Rank #1 #2 or #3 for this to happen. This is not the case here as you will see below.
Zacks ESP: CBS Corp currently has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 72 cents per share.
Zacks Rank: CBS Corp Holds a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 and #5 (Sell-rated stocks) going into an earnings announcement, especially when the company is witnessing 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:
Guess' Inc. GES has an Earnings ESP of +6.67% and a Zacks Rank #1(Strong Buy).
Dean Foods Company DF has an Earnings ESP of +3.85% and a Zacks Rank #2 (Buy).
The Walt Disney Company DIS has an Earnings ESP of +2.16% and a Zacks Rank #3 (Hold).
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