Liberty Media Corporation (LMCA) is set to release its second-quarter 2014 financial numbers before the opening bell on Aug 5, 2014.
In the last reported quarter, the company’s earnings had lagged the Zacks Consensus Estimate by 27%. Let’s see how things are shaping up prior to this announcement.
Factors to be Considered this Quarter
Liberty Media’s businesses are susceptible to rapid technological changes. Large cable TV operators are increasingly deploying digital TV networks, which are increasingly gaining huge market traction. This may adversely impact the channel positioning of Liberty Media’s networks. Increasing deployment of personal video recorders, video-on-demand technology and IPTV network are systematically changing the distribution and viewing habits of the common people.
Earnings Whispers?
Our proven model does not conclusively show that Liberty Media Corporation is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: Liberty Media has a negative Zacks ESP. This is because the Most Accurate estimate stands at 67 cents while the Zacks Consensus Estimate is pegged higher at 71 cents. This leads to an ESP of -5.63% for Liberty Media.
Zacks Rank: Liberty Media carries a Zacks Rank #3 which when combined with a -5.6% ESP lowers the possibility of an earnings surprise.
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.
Other Stocks to Consider
Here are some companies to consider as our model shows they have the right combination of elements to post an earnings beat this quarter.
Windstream Holdings, Inc. (WIN) has an earnings ESP of +12.50% and holds a Zacks Rank #2.
RigNet, Inc. (RNET) has an earnings ESP of +6.25% and carries a Zacks Rank #3.
Dish Network Corp. (DISH) has an earnings ESP of +15.39% and carries a Zacks Rank #3.
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