We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Cincinnati Bell (CBB) Earnings Spring a Surprise in Q2?
Read MoreHide Full Article
Telecom service provider Cincinnati Bell Inc. is slated to report second-quarter 2016 results on Aug 4, before the opening bell.
Last quarter, the company posted a negative earnings surprise of 66.67%. However, the company’s earnings surpassed the Zacks Consensus Estimate in two of the previous four quarters, with an average beat of 25.00%. Let’s see how things are shaping up for this announcement.
Cincinnati Bell could be an interesting play for investors as the stock is portraying decent short-term momentum and solid activity on the earnings estimate revision front. Introduction of MyTV through its Fioptics high-speed Internet service bodes well as providing concise, tailored TV channel packages are likely to drive the company’s top line as well as check churn.
Moreover, creation of a new business division for supporting services to small and mid-sized businesses (SMBs) is an added positive. Moreover, Cincinnati Bell is focusing on developing its IT Services and Hardware division to rake in more profits. Notably, the company is focused on transforming itself from a legacy copper-based telecommunications company into a technology company with contemporary fiber assets with flexible data, video, voice and IP services for both consumer and business customers.
On the flip side, continuous erosion in local access lines, heavy capital expenditure requirements and legal hurdles are potent headwinds. Moreover, intensifying competition in the company’s operational region can be a drag on its pricing power, thereby inducing pressure on margins.
Earnings Whispers
Our proven model does not conclusively show that Cincinnati Bell is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and 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: Cincinnati Bell has an earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 2 cents.
Zacks Rank: Cincinnati Bell has a Zacks Rank #2 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
Meanwhile,we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are some companies that you may consider instead as our model shows that they have the right combination of elements to post an earnings beat this quarter.
MKS Instruments Inc. (MKSI - Free Report) , with an earnings ESP of +2.60% and a Zacks Rank #1.
Facebook Inc. , with an earnings ESP of +2.63% and a Zacks Rank #1.
LG Display Co. Ltd. (LPL - Free Report) , with an earnings ESP of +50.00% and a Zacks Rank #1.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Can Cincinnati Bell (CBB) Earnings Spring a Surprise in Q2?
Telecom service provider Cincinnati Bell Inc. is slated to report second-quarter 2016 results on Aug 4, before the opening bell.
Last quarter, the company posted a negative earnings surprise of 66.67%. However, the company’s earnings surpassed the Zacks Consensus Estimate in two of the previous four quarters, with an average beat of 25.00%. Let’s see how things are shaping up for this announcement.
CINCINNATI BELL Price and EPS Surprise
CINCINNATI BELL Price and EPS Surprise | CINCINNATI BELL Quote
Factors at Play
Cincinnati Bell could be an interesting play for investors as the stock is portraying decent short-term momentum and solid activity on the earnings estimate revision front. Introduction of MyTV through its Fioptics high-speed Internet service bodes well as providing concise, tailored TV channel packages are likely to drive the company’s top line as well as check churn.
Moreover, creation of a new business division for supporting services to small and mid-sized businesses (SMBs) is an added positive. Moreover, Cincinnati Bell is focusing on developing its IT Services and Hardware division to rake in more profits. Notably, the company is focused on transforming itself from a legacy copper-based telecommunications company into a technology company with contemporary fiber assets with flexible data, video, voice and IP services for both consumer and business customers.
On the flip side, continuous erosion in local access lines, heavy capital expenditure requirements and legal hurdles are potent headwinds. Moreover, intensifying competition in the company’s operational region can be a drag on its pricing power, thereby inducing pressure on margins.
Earnings Whispers
Our proven model does not conclusively show that Cincinnati Bell is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and 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: Cincinnati Bell has an earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 2 cents.
Zacks Rank: Cincinnati Bell has a Zacks Rank #2 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
Meanwhile,we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are some companies that you may consider instead as our model shows that they have the right combination of elements to post an earnings beat this quarter.
MKS Instruments Inc. (MKSI - Free Report) , with an earnings ESP of +2.60% and a Zacks Rank #1.
Facebook Inc. , with an earnings ESP of +2.63% and a Zacks Rank #1.
LG Display Co. Ltd. (LPL - Free Report) , with an earnings ESP of +50.00% and a Zacks Rank #1.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>