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AMC Networks (AMCX) Q2 Earnings: What's in the Cards?
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AMC Networks Inc. (AMCX - Free Report) is slated to report second-quarter 2016 financial numbers before the opening bell on Aug 4.
Last quarter, the company posted a negative earnings surprise of 10.87%. However, the company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, with an average beat of 11.93%. Let’s see how things are shaping up for this announcement.
AMC Networks owns and operates various cable television stations and is engaged in producing programming and movie content. Its programming network channels include AMC, IFC, Sundance, WE and BBC America.
AMC Networks’ strength lies in programs with original content for which it holds ownership rights. In this regard, shows like Breaking Bad and Mad Men have been major hits, driving commercial success for the company. However, one of the biggest drags for AMC Networks is that its network is entirely dependent on The Walking Dead franchise. Recently, The Walking Dead, in its sixth season, witnessed downward ratings in relation to viewers and advertising. The same trend was observed in case of Preacher.
Additionally, severe competitive threat from over-the-top (OTT) online video streaming service providers and other media companies coupled with the recent trend of the bulk of ad revenues skewed toward Internet TV are factors which may mar the quarter’s performance.
Earnings Whispers
Our proven model does not conclusively show that AMC Networks 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: AMC Networks has an earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.34.
Zacks Rank: AMC Networks has a Zacks Rank #4 (Sell). Please note that 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.
Facebook Inc. , with an Earnings ESP of +2.63% and a Zacks Rank #1.
CDK Global, Inc. , with an Earnings ESP of +4.26% 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 >>
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AMC Networks (AMCX) Q2 Earnings: What's in the Cards?
AMC Networks Inc. (AMCX - Free Report) is slated to report second-quarter 2016 financial numbers before the opening bell on Aug 4.
Last quarter, the company posted a negative earnings surprise of 10.87%. However, the company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, with an average beat of 11.93%. Let’s see how things are shaping up for this announcement.
AMC NETWORKS- A Price and EPS Surprise
AMC NETWORKS- A Price and EPS Surprise | AMC NETWORKS- A Quote
Factors Likely to Influence this Quarter
AMC Networks owns and operates various cable television stations and is engaged in producing programming and movie content. Its programming network channels include AMC, IFC, Sundance, WE and BBC America.
AMC Networks’ strength lies in programs with original content for which it holds ownership rights. In this regard, shows like Breaking Bad and Mad Men have been major hits, driving commercial success for the company. However, one of the biggest drags for AMC Networks is that its network is entirely dependent on The Walking Dead franchise. Recently, The Walking Dead, in its sixth season, witnessed downward ratings in relation to viewers and advertising. The same trend was observed in case of Preacher.
Additionally, severe competitive threat from over-the-top (OTT) online video streaming service providers and other media companies coupled with the recent trend of the bulk of ad revenues skewed toward Internet TV are factors which may mar the quarter’s performance.
Earnings Whispers
Our proven model does not conclusively show that AMC Networks 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: AMC Networks has an earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.34.
Zacks Rank: AMC Networks has a Zacks Rank #4 (Sell). Please note that 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.
Facebook Inc. , with an Earnings ESP of +2.63% and a Zacks Rank #1.
CDK Global, Inc. , with an Earnings ESP of +4.26% 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 >>