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.
Pay TV Stocks to Release Earnings on July 21: DISH, RCI, T
Read MoreHide Full Article
As the Q2 earnings season unfurls, the defining factor remains the improvement of earnings over the last few quarters. However, the market consensus is still dreary, as chances of earnings growth remaining in the negative looms large. If this happens, it would be the fifth straight quarter of negative earnings growth.
As per the recent Earnings Trends report, the total S&P 500 earnings for the quarter is expected to decline by 5.4% on 0.5% lower revenues. Moreover, the earnings growth estimates for the succeeding quarter appear to be going into that negative territory as well making matters gloomy. However on the brighter side, we foresee positive earnings growth in the last quarter of the year that may scale even higher in 2017.
Focus on Pay-TV Industry
The U.S. pay-TV industry is currently going through a transitional phase. The traditional pay-TV players viz. cable Multi Service Operators (MSO) and satellite TV players are being challenged by video content streaming service operators like Hulu.com for market share. This has precipitated in to a recent spike in cord cutting leading to an increased customer churn rate. Moreover, as the Internet services get stronger with the increased 4G LTE and WiFi coverage, the viability of the pay TV as a service diminishes rapidly. Meanwhile, this has led to pay-TV players launch their own internet TV services to counteract this trend.
We focus on three pay TV industry players who are scheduled to report their financial results on Jul 21, 2016.
DISH Network Corp. offers satellite television products and services. The company has a Zacks Rank #4 (Sell) with a positive Earnings ESP of 1.35%. As per our proven model, DISH currently doesn’t have the potential combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better to make us confident of an earnings beat. (Read more: What's in Store for DISH Network in Q2 Earnings?)
AT&T Inc. (T - Free Report) is a premier communications company. Apart from its telecom prowess, it is currently the largest pay TV operator in the world after its merger with DIRECTV. Due to its potent combination of a Zacks Rank #2 (Buy) and a positive Earnings ESP of 2.82%, it is likely to beat the estimates this quarter. (Read more: Will AT&T Surpass Estimates this Earnings Season?)
Rogers Communications Inc. (RCI - Free Report) is a Canadian communications company. Due to its combination of a Zacks Rank #4 and an Earnings ESP of 0.00%, it is unlikely for RCI to beat estimates this quarter as per our proven model. (Read more: Will Rogers Communications Disappoint Q2 Earnings?)
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
Pay TV Stocks to Release Earnings on July 21: DISH, RCI, T
As the Q2 earnings season unfurls, the defining factor remains the improvement of earnings over the last few quarters. However, the market consensus is still dreary, as chances of earnings growth remaining in the negative looms large. If this happens, it would be the fifth straight quarter of negative earnings growth.
As per the recent Earnings Trends report, the total S&P 500 earnings for the quarter is expected to decline by 5.4% on 0.5% lower revenues. Moreover, the earnings growth estimates for the succeeding quarter appear to be going into that negative territory as well making matters gloomy. However on the brighter side, we foresee positive earnings growth in the last quarter of the year that may scale even higher in 2017.
Focus on Pay-TV Industry
The U.S. pay-TV industry is currently going through a transitional phase. The traditional pay-TV players viz. cable Multi Service Operators (MSO) and satellite TV players are being challenged by video content streaming service operators like Hulu.com for market share. This has precipitated in to a recent spike in cord cutting leading to an increased customer churn rate. Moreover, as the Internet services get stronger with the increased 4G LTE and WiFi coverage, the viability of the pay TV as a service diminishes rapidly. Meanwhile, this has led to pay-TV players launch their own internet TV services to counteract this trend.
We focus on three pay TV industry players who are scheduled to report their financial results on Jul 21, 2016.
DISH Network Corp. offers satellite television products and services. The company has a Zacks Rank #4 (Sell) with a positive Earnings ESP of 1.35%. As per our proven model, DISH currently doesn’t have the potential combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better to make us confident of an earnings beat. (Read more: What's in Store for DISH Network in Q2 Earnings?)
DISH NETWORK CP Price and EPS Surprise
DISH NETWORK CP Price and EPS Surprise | DISH NETWORK CP Quote
AT&T Inc. (T - Free Report) is a premier communications company. Apart from its telecom prowess, it is currently the largest pay TV operator in the world after its merger with DIRECTV. Due to its potent combination of a Zacks Rank #2 (Buy) and a positive Earnings ESP of 2.82%, it is likely to beat the estimates this quarter. (Read more: Will AT&T Surpass Estimates this Earnings Season?)
AT&T INC Price and EPS Surprise
AT&T INC Price and EPS Surprise | AT&T INC Quote
Rogers Communications Inc. (RCI - Free Report) is a Canadian communications company. Due to its combination of a Zacks Rank #4 and an Earnings ESP of 0.00%, it is unlikely for RCI to beat estimates this quarter as per our proven model. (Read more: Will Rogers Communications Disappoint Q2 Earnings?)
ROGERS COMM CLB Price and EPS Surprise
ROGERS COMM CLB Price and EPS Surprise | ROGERS COMM CLB Quote
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 >>