CBS Corporation (CBS) is set to report its third-quarter 2014 results on Nov 5, 2014. Last quarter, it posted a positive earnings surprise of 8.3%. Let us see how things are developing for this announcement.
Factors Affecting This Quarter
Softer TV advertising trends and increased programming costs on account of Thursday Night NFL are likely to impact CBS Corp’s quarterly earnings. Moreover, relatively subdued content monetization activity will add to the woes.
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 -1.37%. This is because the Most Accurate estimate stands at 72 cents per share whereas the Zacks Consensus Estimate stands at 73 cents per share.
Zacks Rank: CBS Corp’s carries a Zacks Rank #4 (Sell), which when combined with negative ESP makes surprise prediction unlikely.
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.
Other Stocks to Consider
Here are some other companies you may want to consider as our model shows these to have the right combination of elements to post an earnings beat:
CST Brands, Inc. (CST) has an Earnings ESP of +8.93% and a Zacks Rank #2 (Buy).
Archer-Daniels-Midland Co. (ADM) has an Earnings ESP of +5.33% and a Zacks Rank #3 (Hold).
Michael Kors Holdings Ltd. (KORS) has an Earnings ESP of +1.14% and a Zacks Rank #3.
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