Thomson Reuters Corporation TRI, a provider of information related to financial & risk, legal, tax & accounting, and intellectual property & science, is expected to report first-quarter 2015 results on Apr 29. In the last quarter, the company had delivered a negative earnings surprise of 10.4%. Let’s see how things are shaping up for this announcement.
Factors Influencing this Quarter
Management, through top-line growth, cost-containment and share buyback strategies, remains focused on augmenting the company’s bottom-line results. However, analysts remain concerned about the performance of the Financial and Risk segment which witnessed a revenue decline of 5% (1% before currency) in the fourth quarter of 2014. Moreover, adverse currency fluctuations may play spoilsport in the quarter to be reported.
Earnings Whispers
Our proven model does not conclusively show that Thomson Reuters is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: Thomson Reuters has an Earnings ESP of 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate both stand at 46 cents.
Zacks Rank: Thomson Reuters carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing 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:
Groupon, Inc. GRPN has an Earnings ESP of +50.00% and a Zacks Rank #1 (Strong Buy).
Skullcandy, Inc. SKUL has an Earnings ESP of +7.69% and a Zacks Rank #1.
Tyson Foods, Inc. TSN has an Earnings ESP of +1.35% and a Zacks Rank #3 (Hold).
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