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Media Stock Q4 Earnings to Watch on Feb 28: CABO, QVCB, NXST
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We have reached the end of the Q4 2016 earnings season. Our last reported Earnings Preview reveals an impressive Q4 reporting cycle on the back of stronger earnings growth than the last two years. The S&P 500 space is expected to end Q4 with a healthy growth rate of 7.4% and 3.9% for the bottom line and the top line, respectively. The readings are more favorable than those of Q3, wherein earnings expanded 3.7% and revenues grew merely 2.2%.
Media Sector Stocks at a Glance
As per the Zacks Industry categorization, the ‘Media Sector’ falls under the broader ‘Consumer Discretionary’ sector, one of the 16 Zacks sectors.
Our last Earnings Preview stated that roughly 88.6% of the Consumer Discretionary stocks which have reported results have seen a 10.6% rise in earnings and a 12.9% upside in revenues on a year-over-year basis. Moreover, we believe that earnings of the Consumer Discretionary space are on track to be up 9.9% in the quarter on 11.8% higher revenues than last year.
The Media Sector further includes a subcategory – Cable TV industry – which has some major stocks such as Comcast Corp. (CMCSA - Free Report) , Charter Communications Inc. (CHTR - Free Report) , Liberty Global plc. (LBTYA - Free Report) and DISH Network Corp. . Comcast and Charter Communications posted strong financial results while DISH Network and Liberty Global posted mixed results. Comcast and Charter Communications’ strategic business merger and acquisition plans and venture into the U.S. wireless space might have favored their growth.
On the other hand, DISH Network’s failure to strike any deal with wireless operators to deploy a nationwide wireless network acted as a major headwind. Liberty Global’s predominant operation in Europe, exposes it to economic downturns.
Another sub-industry of the Media Sector is the Broadcast Radio and Television industry, wherein AMC Networks Inc. (AMCX - Free Report) is a prominent player. The company reported impressive fourth-quarter 2016 financial numbers, with both the top line and the bottom line outpacing the Zacks Consensus Estimate on Feb 23. We believe the ongoing success of The Walking Dead franchise was one of the major reasons for the outperformance.
Media Stocks to Release Q4 Earnings on Feb 28
Let’s see what’s in store for these media companies that are expected to report fourth-quarter numbers on Feb 28.
Cable ONE (CABO - Free Report) is among the top 10 cable companies in the U.S. It caters to almost 700,000 customers across 19 states. The company provides a wide range of the latest products and services that include wireless Internet service, high-definition programming and phone service with free, unlimited long-distance calling in the U.S.
Last quarter, the company posted a negative earnings surprise of 26.52%. However, the company’s earnings surpassed the Zacks Consensus Estimate in three of the previous four quarters, with an average beat of 10.36%.
The company has a Zacks Rank #5 (Strong Sell) and an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $4.31. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Our proven model does not conclusively show that Cable ONE Holding 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Also, we caution against stocks with a Zacks Rank #4 (Sell) or 5 going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Liberty Interactive Corporation is a cable company, headquartered in Englewood, Colorado.The company owns a broad range of electronic retailing, media, communications and entertainment business lines and investments.
The company has a Zacks Rank #3 which according to our model increases the odds of an earnings surprise. However, the company’s Earnings ESP of 0.00% (Most Accurate estimate and Zacks Consensus Estimate stand at $9.25) dims the possibility. The company’s earnings lagged the Zacks Consensus Estimate in the third quarter.
Liberty Interactive Corporation Price and EPS Surprise
Hence, as per our quantitative model, we cannot conclusively predict an earnings beat for the company.
Nexstar Broadcasting Group, Inc. (NXST - Free Report) operates as a television broadcasting and digital media company in the United States. It focuses on the acquisition, development and operation of television stations and interactive community websites in medium-sized markets. The company offers free over-the-air programming to television viewing audiences.
The company posted a negative earnings surprise of 9.30% last quarter. Moreover, the company’s earnings lagged the Zacks Consensus Estimate in three of the previous four quarters, with an average miss of 3.37%.
Weakening the chance of an earnings beat further is the company’s Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate pegged at $1.36.
Nexstar Broadcasting Group, Inc. Price and EPS Surprise
Hence, as per our quantitative model, in spite of carrying a favorable Zacks Rank #3, we cannot conclusively predict an earnings beat for the company.
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Media Stock Q4 Earnings to Watch on Feb 28: CABO, QVCB, NXST
We have reached the end of the Q4 2016 earnings season. Our last reported Earnings Preview reveals an impressive Q4 reporting cycle on the back of stronger earnings growth than the last two years. The S&P 500 space is expected to end Q4 with a healthy growth rate of 7.4% and 3.9% for the bottom line and the top line, respectively. The readings are more favorable than those of Q3, wherein earnings expanded 3.7% and revenues grew merely 2.2%.
Media Sector Stocks at a Glance
As per the Zacks Industry categorization, the ‘Media Sector’ falls under the broader ‘Consumer Discretionary’ sector, one of the 16 Zacks sectors.
Our last Earnings Preview stated that roughly 88.6% of the Consumer Discretionary stocks which have reported results have seen a 10.6% rise in earnings and a 12.9% upside in revenues on a year-over-year basis. Moreover, we believe that earnings of the Consumer Discretionary space are on track to be up 9.9% in the quarter on 11.8% higher revenues than last year.
The Media Sector further includes a subcategory – Cable TV industry – which has some major stocks such as Comcast Corp. (CMCSA - Free Report) , Charter Communications Inc. (CHTR - Free Report) , Liberty Global plc. (LBTYA - Free Report) and DISH Network Corp. . Comcast and Charter Communications posted strong financial results while DISH Network and Liberty Global posted mixed results. Comcast and Charter Communications’ strategic business merger and acquisition plans and venture into the U.S. wireless space might have favored their growth.
On the other hand, DISH Network’s failure to strike any deal with wireless operators to deploy a nationwide wireless network acted as a major headwind. Liberty Global’s predominant operation in Europe, exposes it to economic downturns.
Another sub-industry of the Media Sector is the Broadcast Radio and Television industry, wherein AMC Networks Inc. (AMCX - Free Report) is a prominent player. The company reported impressive fourth-quarter 2016 financial numbers, with both the top line and the bottom line outpacing the Zacks Consensus Estimate on Feb 23. We believe the ongoing success of The Walking Dead franchise was one of the major reasons for the outperformance.
Media Stocks to Release Q4 Earnings on Feb 28
Let’s see what’s in store for these media companies that are expected to report fourth-quarter numbers on Feb 28.
Cable ONE (CABO - Free Report) is among the top 10 cable companies in the U.S. It caters to almost 700,000 customers across 19 states. The company provides a wide range of the latest products and services that include wireless Internet service, high-definition programming and phone service with free, unlimited long-distance calling in the U.S.
Last quarter, the company posted a negative earnings surprise of 26.52%. However, the company’s earnings surpassed the Zacks Consensus Estimate in three of the previous four quarters, with an average beat of 10.36%.
The company has a Zacks Rank #5 (Strong Sell) and an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $4.31. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Cable One, Inc. Price and EPS Surprise
Cable One, Inc. Price and EPS Surprise | Cable One, Inc. Quote
Our proven model does not conclusively show that Cable ONE Holding 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Also, we caution against stocks with a Zacks Rank #4 (Sell) or 5 going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Liberty Interactive Corporation is a cable company, headquartered in Englewood, Colorado.The company owns a broad range of electronic retailing, media, communications and entertainment business lines and investments.
The company has a Zacks Rank #3 which according to our model increases the odds of an earnings surprise. However, the company’s Earnings ESP of 0.00% (Most Accurate estimate and Zacks Consensus Estimate stand at $9.25) dims the possibility. The company’s earnings lagged the Zacks Consensus Estimate in the third quarter.
Liberty Interactive Corporation Price and EPS Surprise
Liberty Interactive Corporation Price and EPS Surprise | Liberty Interactive Corporation Quote
Hence, as per our quantitative model, we cannot conclusively predict an earnings beat for the company.
Nexstar Broadcasting Group, Inc. (NXST - Free Report) operates as a television broadcasting and digital media company in the United States. It focuses on the acquisition, development and operation of television stations and interactive community websites in medium-sized markets. The company offers free over-the-air programming to television viewing audiences.
The company posted a negative earnings surprise of 9.30% last quarter. Moreover, the company’s earnings lagged the Zacks Consensus Estimate in three of the previous four quarters, with an average miss of 3.37%.
Weakening the chance of an earnings beat further is the company’s Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate pegged at $1.36.
Nexstar Broadcasting Group, Inc. Price and EPS Surprise
Nexstar Broadcasting Group, Inc. Price and EPS Surprise | Nexstar Broadcasting Group, Inc. Quote
Hence, as per our quantitative model, in spite of carrying a favorable Zacks Rank #3, we cannot conclusively predict an earnings beat for the company.
A Full-Blown Technological Breakthrough in the Making
Zacks’ Aggressive Growth Strategist Brian Bolan explores autonomous cars in our latest Special Report, Driverless Cars: Your Roadmap to Mega-Profits Today. In addition to who will be selling them and how the auto industry will be impacted, Brian reveals 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>