Back to top

Image: Bigstock

Time Warner (TWX): Stock Poised to Beat Earnings in Q2?

Read MoreHide Full Article

Time Warner Inc. , the media and entertainment company, is slated to report second-quarter 2016 results before the market opens on Aug 3. The question lingering in investors’ minds now is, whether the company will be able to continue with its positive earnings surprise streak in the quarter to be reported. In the trailing four quarters, it outperformed the Zacks Consensus Estimate by an average of 14.1%. Let’s see how things are shaping up for this announcement.

Zacks Model Shows Likely Earnings Beat

Our proven model shows that Time Warner is likely to beat earnings estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. The Most Accurate estimate stands at $1.16 and the Zacks Consensus Estimate is pegged at $1.15. So the ensuing +0.87% ESP and the company’s Zacks Rank #3 (Hold) make us reasonably confident of an earnings beat.

Factors Influencing This Quarter

We believe Time Warner’s foray into new markets and digital endeavors augur well for its operational performance. We also think that management’s focus on original programming, cost reduction and increasing investments in key areas will enhance profitability. Additionally, the company has been expanding its digital presence to enable consumers to access content from several platforms and devices. Its investments in video content and technology continue to drive results. All these initiatives may find reflection in the quarter to be reported.

TIME WARNER INC Price, Consensus and EPS Surprise

TIME WARNER INC Price, Consensus and EPS Surprise | TIME WARNER INC Quote

Stocks Poised to Beat Earnings Estimates

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:

Macy's, Inc. (M - Free Report) has an Earnings ESP of +31.71% and a Zacks Rank #2 (Buy).

Eros International Plc has an Earnings ESP of +7.14% and a Zacks Rank #3.

TiVo Inc. has an Earnings ESP of +15.39% and a Zacks Rank #3.

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:


Macy's, Inc. (M) - free report >>

Published in