Time Warner Inc. TWX, the media and entertainment company, is expected to report third-quarter 2015 results before the market opens on Nov 4. The big question facing investors now is whether the company will be able to continue with its positive earnings surprise streak in the quarter to be reported.
In the trailing four quarters, the company outperformed the Zacks Consensus Estimate by an average of 16.2%. Let’s see how things are shaping up for this announcement:
Zacks Model Shows Likely Earnings Beat
Our proven model shows that Time Warner 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. The Most Accurate estimate stands at $1.10 and the Zacks Consensus Estimate is pegged at $1.09. So the ensuing +0.92% ESP and the company’s Zacks Rank #3 (Hold) make us reasonably confident of an earnings beat.
Factors Influencing This Quarter
We believe Time Warner’s foray into new markets and digital endeavors augur well for its operational performance. We also think that the company’s focus on original programming, cost reduction and increasing investments in key areas will enhance profitability. Additionally, the company has been expanding its digital presence to enable consumers to access content from several platforms and devices. All these initiatives may find reflection in the quarter to be reported.
Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Facebook, Inc. FB has an Earnings ESP of +5.71% and a Zacks Rank #1 (Strong Buy).
Nexstar Broadcasting Group, Inc. NXST has an Earnings ESP of +14.29% and a Zacks Rank #2 (Buy).
Viacom, Inc. VIAB has an Earnings ESP of +0.66% and a Zacks Rank #3.
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