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.
Discovery Communications Inc. is scheduled to report third-quarter results on Nov 1, before market opens.
The company posed an earnings surprise of 16.39% in the last quarter. Moreover, it posted an earnings surprise in three of the last four quarters, with an average beat of 6.02%.
Factors at Play
One of the major concerns for Discovery is customer concentration risk as the bulk of the company’s revenues come from around 10% of its customers. Moreover, the company has been struggling to boost advertising revenues which comprise a significant portion of its revenues. The company’s bottom line might also be impacted by unfavorable foreign exchange movements.
However, we are positive on the company’s efforts to deliver customer centric content and expand its business. The company‘s investor return policy through repurchases and buybacks is also impressive. Discovery has also entered into valuable collaborations with Mediacom, Hulu, Sony Corporation and CBS Corp. .
Our proven model does not conclusively show that Discovery 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, this is not the case here as elaborated below.
Zacks ESP: Discovery has an earnings ESP of -2.33%. This is because the Most Accurate estimate stands at 42 cents while the Zacks Consensus Estimate is pegged at 43 cents. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Discovery has a Zacks Rank #4 (Sell). Please note that we caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions momentum as is the case for Discovery.
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Discovery Communications (DISCA) Q3 Earnings Preview
Discovery Communications Inc. is scheduled to report third-quarter results on Nov 1, before market opens.
The company posed an earnings surprise of 16.39% in the last quarter. Moreover, it posted an earnings surprise in three of the last four quarters, with an average beat of 6.02%.
Factors at Play
One of the major concerns for Discovery is customer concentration risk as the bulk of the company’s revenues come from around 10% of its customers. Moreover, the company has been struggling to boost advertising revenues which comprise a significant portion of its revenues. The company’s bottom line might also be impacted by unfavorable foreign exchange movements.
However, we are positive on the company’s efforts to deliver customer centric content and expand its business. The company‘s investor return policy through repurchases and buybacks is also impressive. Discovery has also entered into valuable collaborations with Mediacom, Hulu, Sony Corporation and CBS Corp. .
Our proven model does not conclusively show that Discovery 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, this is not the case here as elaborated below.
Zacks ESP: Discovery has an earnings ESP of -2.33%. This is because the Most Accurate estimate stands at 42 cents while the Zacks Consensus Estimate is pegged at 43 cents. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Discovery has a Zacks Rank #4 (Sell). Please note that we caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions momentum as is the case for Discovery.
DISCOVERY COM-A Price and EPS Surprise
DISCOVERY COM-A Price and EPS Surprise | DISCOVERY COM-A Quote
Stock to Consider
Here is a company you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat this quarter:
Nexstar Broadcasting Group (NXST - Free Report) , with an earnings ESP of +12.64% and a Zacks Rank #2. The company is expected to report third-quarter results on Nov 8. You can see the complete list of today’s Zacks #1 Rank stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>