Back to top

Image: Bigstock

ViacomCBS (VIAC) to Report Q1 Earnings: What's in the Cards?

Read MoreHide Full Article

ViacomCBS is slated to report first-quarter 2020 results on May 7.

Notably, ViacomCBS came into existence post the completion of the merger between CBS Corporation and Viacom Inc., which was announced on Dec 4, 2019.

Markedly, the Zacks Consensus Estimate for first-quarter earnings has been revised 16.8% downward to $1.04 per share over the past 30 days, implying growth of 7.2% from the figure reported in the previous quarter.

Moreover, the consensus mark for sales is pegged at $6.91 billion, suggesting growth of 0.5% from the figure reported sequentially.
 

ViacomCBS Inc. Price and EPS Surprise

ViacomCBS Inc. Price and EPS Surprise

ViacomCBS Inc. price-eps-surprise | ViacomCBS Inc. Quote

 

Let’s see how things shaped up prior to this announcement.

Factors to Consider

ViacomCBS’ first-quarter results are expected to reflect lower ad spending due to the coronavirus outbreak. Notably, advertising revenues accounted for 44.1% of the company’s top line in the fourth quarter of 2019.

Moreover, due to the coronavirus impact on economy that resulted in job losses, cord cutting is expected to have increased in the to-be-reported quarter. This along with stiff competition from streaming services like Netflix, Disney+ and Amazon prime video is anticipated to have hurt ViacomCBS’ subscriber base.

Nevertheless, a strong content portfolio inclusive of more than 140,000 premium TV episodes and 3,600 film titles is a key catalyst.

Moreover, a solid portfolio of streaming services (both advertising and subscription-based offerings) including CBS All Access, Showtime OTT, Pluto TV, Noggin and BET+ is expected to have bumped up the top line owing to surging viewership amid lockdowns and shelter-in-place guidelines.

What Our Model Suggests

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

ViacomCBS has an Earnings ESP of -9.42% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering from the sector as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:

Shopify (SHOP - Free Report) has an Earnings ESP of +23.41% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Take Two Interactive (TTWO - Free Report) has an Earnings ESP of +13.24% and a Zacks Rank #2.

Activision Blizzard has an Earnings ESP of +10.39% and is Zacks #2 Ranked.



Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Take-Two Interactive Software, Inc. (TTWO) - free report >>

Shopify Inc. (SHOP) - free report >>

Published in