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Time Inc. (TIME): What Will Q2 Earnings Release Unveil?
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Time Inc. (TIME - Free Report) is slated to report second-quarter 2016 results on Aug 4, before the opening bell. In the last quarter, it incurred a loss of 11 cents a share that came in line with the Zacks Consensus Estimate. However, in the trailing four quarters, the company outperformed the Zacks Consensus Estimate by an average of 27.6%. Let’s see how things are shaping up for this announcement.
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that Time Inc. is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. Time Inc. has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at 16 cents. The company carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, its ESP of 0.00% makes surprise prediction difficult.
Factors Influencing this Quarter
Time Inc. has been focusing on the creation of digital properties and intends to increase its digital advertising revenues by enhancing native branded content and video. The company is also concentrating on customization of data to help advertisers target their audience more effectively. In this connection, the company acquired the assets of Viant. Management anticipates Viant to contribute over $100 million of digital advertising revenue in 2016. There has been a drastic change in audience preference due to which advertisers have shifted dollars to digital video. Management anticipates revenue growth of 1%–5% for 2016.
We observe that total advertising revenue grew 2% during the first quarter of 2016, primarily due to the buyout of Viant. Print and other advertising revenue fell 4%, whereas digital advertising revenue surged 23%. Time Inc. is targeting adjacent revenue opportunities, which include Live Media, SI Play, eCommerce and various other products. Further, Time Inc. has acquired inVNT, a company that specializes in live media.
For the second quarter of 2016, management had earlier projected total revenue to be up low-single-digits year over year. Time Inc. envisions advertising revenue to be up mid-single-digits year over year and subscription revenue to decline in the mid-single-digits to high-single-digits, with newsstand revenue falling in the low-teens to mid-teens. Operating expenses are projected to increase in the high-single-digits year over year.
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:
Time Warner Inc. has an Earnings ESP of +0.87% and a Zacks Rank #3.
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 >>
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Time Inc. (TIME): What Will Q2 Earnings Release Unveil?
Time Inc. (TIME - Free Report) is slated to report second-quarter 2016 results on Aug 4, before the opening bell. In the last quarter, it incurred a loss of 11 cents a share that came in line with the Zacks Consensus Estimate. However, in the trailing four quarters, the company outperformed the Zacks Consensus Estimate by an average of 27.6%. Let’s see how things are shaping up for this announcement.
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that Time Inc. is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. Time Inc. has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at 16 cents. The company carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, its ESP of 0.00% makes surprise prediction difficult.
Factors Influencing this Quarter
Time Inc. has been focusing on the creation of digital properties and intends to increase its digital advertising revenues by enhancing native branded content and video. The company is also concentrating on customization of data to help advertisers target their audience more effectively. In this connection, the company acquired the assets of Viant. Management anticipates Viant to contribute over $100 million of digital advertising revenue in 2016. There has been a drastic change in audience preference due to which advertisers have shifted dollars to digital video. Management anticipates revenue growth of 1%–5% for 2016.
We observe that total advertising revenue grew 2% during the first quarter of 2016, primarily due to the buyout of Viant. Print and other advertising revenue fell 4%, whereas digital advertising revenue surged 23%. Time Inc. is targeting adjacent revenue opportunities, which include Live Media, SI Play, eCommerce and various other products. Further, Time Inc. has acquired inVNT, a company that specializes in live media.
For the second quarter of 2016, management had earlier projected total revenue to be up low-single-digits year over year. Time Inc. envisions advertising revenue to be up mid-single-digits year over year and subscription revenue to decline in the mid-single-digits to high-single-digits, with newsstand revenue falling in the low-teens to mid-teens. Operating expenses are projected to increase in the high-single-digits year over year.
TIME INC Price, Consensus and EPS Surprise
TIME INC Price, Consensus and EPS Surprise | TIME 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:
Time Warner Inc. has an Earnings ESP of +0.87% and a Zacks Rank #3.
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 >>