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Broadcasting Stocks' Earnings Slated on Nov 3: CBS, AMCX
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The Q3 earnings season is in full swing with multiple reports lined up for release this week. The quarter has been increasingly heading toward an improvement after five straight quarters of earnings decline. This period is a significant one with both earnings and revenues on the growth trajectory.
Per our Earnings Outlook report as of Nov 1, out of the 332 S&P 500 companies that have come up with their quarterly numbers, approximately 72.9% posted positive earnings surprises, while 55.4% beat top-line expectations. According to the report, earnings for the 332 S&P 500 companies that have reported so far are up 1.9% from the same-period last year, while revenues have increased 1.3%.
Further, the report projects that earnings for the total S&P 500 companies will improve 2.1% from the year-ago period with total revenue inching up 1.4%. In second-quarter 2016, earnings for the S&P 500 companies declined 2.8%, whereas revenues were flat.
The widely diversified Consumer Discretionary sector has so far witnessed encouraging earnings and revenue growth rates.
Per the latest report, nearly 45.7% of the Consumer Discretionary companies have already reported their third-quarter results, out of which 62.5% beat earnings and 43.8% surpassed revenue estimates. Total earnings for these companies jumped 7.1% while revenues climbed 8% year over year. Broadcasting stocks form part of the Consumer Discretionary sector.
Among broadcasting stocks lined up to report on Nov 3, let’s take a sneak peek at two companies.
CBS Corporation is slated to report third-quarter 2016 results. The big question lingering on investors' mind now is whether the company will be able to keep its earnings streak alive or not. In the preceding quarter, the company reported an earnings beat of 8.1%. Notably, the company has surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average earnings beat of 6.6%. The Zacks Consensus Estimate for the third-quarter is pegged at 98 cents.
CBS Corporation’s sustained focus on increasing subscription-based revenues and increased political spending should drive the top line in the quarter to be reported. Further, the company had previously said that it anticipates increased political advertising in the latter half of the year which in turn will favorably impact its performance. Additionally, it has said that TV stations are pacing to be up high-single digits, buoyed by political advertising. Moreover, radio is expected to do well in third-quarter 2016, backed by an increase in political spending.
However, the media industry is highly competitive and CBS faces intense competition from other broadcast radio and television stations, cable television networks and motion picture studios in the market in which it operates. This may weigh on the company’s performance. (Read more: CBS Corp. to Report Q3 Earnings: What's in Store?)
AMC Networks Inc. (AMCX - Free Report) is slated to report third-quarter 2016 financial numbers before the opening bell. Last quarter, the company posted a negative earnings surprise of 14.3%. Moreover, the company’s earnings lagged the Zacks Consensus Estimate in two of the previous four quarters, with an average miss of 1.7%. (Read more: AMC Networks Q3 Earnings: What's in the Cards?)
AMC Networks owns and operates various cable television stations. It is also engaged in the production of programming and movie content. The company’s 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. Recently, the premiere of The Walking Dead, in its seventh season, witnessed growth in the number of total viewers compared to the season six premiere and hence stood as the number one show on television. In case, the show did not live up to expectations it may prove to be a drag for the company.
AMC Networks carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -5.00%. Earlier, the company had Earnings ESP of -3.00%. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
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Broadcasting Stocks' Earnings Slated on Nov 3: CBS, AMCX
The Q3 earnings season is in full swing with multiple reports lined up for release this week. The quarter has been increasingly heading toward an improvement after five straight quarters of earnings decline. This period is a significant one with both earnings and revenues on the growth trajectory.
Per our Earnings Outlook report as of Nov 1, out of the 332 S&P 500 companies that have come up with their quarterly numbers, approximately 72.9% posted positive earnings surprises, while 55.4% beat top-line expectations. According to the report, earnings for the 332 S&P 500 companies that have reported so far are up 1.9% from the same-period last year, while revenues have increased 1.3%.
Further, the report projects that earnings for the total S&P 500 companies will improve 2.1% from the year-ago period with total revenue inching up 1.4%. In second-quarter 2016, earnings for the S&P 500 companies declined 2.8%, whereas revenues were flat.
The widely diversified Consumer Discretionary sector has so far witnessed encouraging earnings and revenue growth rates.
Per the latest report, nearly 45.7% of the Consumer Discretionary companies have already reported their third-quarter results, out of which 62.5% beat earnings and 43.8% surpassed revenue estimates. Total earnings for these companies jumped 7.1% while revenues climbed 8% year over year. Broadcasting stocks form part of the Consumer Discretionary sector.
Among broadcasting stocks lined up to report on Nov 3, let’s take a sneak peek at two companies.
CBS Corporation is slated to report third-quarter 2016 results. The big question lingering on investors' mind now is whether the company will be able to keep its earnings streak alive or not. In the preceding quarter, the company reported an earnings beat of 8.1%. Notably, the company has surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average earnings beat of 6.6%. The Zacks Consensus Estimate for the third-quarter is pegged at 98 cents.
CBS CORP Price, Consensus and EPS Surprise
CBS CORP Price, Consensus and EPS Surprise | CBS CORP Quote
CBS Corporation’s sustained focus on increasing subscription-based revenues and increased political spending should drive the top line in the quarter to be reported. Further, the company had previously said that it anticipates increased political advertising in the latter half of the year which in turn will favorably impact its performance. Additionally, it has said that TV stations are pacing to be up high-single digits, buoyed by political advertising. Moreover, radio is expected to do well in third-quarter 2016, backed by an increase in political spending.
However, the media industry is highly competitive and CBS faces intense competition from other broadcast radio and television stations, cable television networks and motion picture studios in the market in which it operates. This may weigh on the company’s performance. (Read more: CBS Corp. to Report Q3 Earnings: What's in Store?)
CBS Corporation has an Earnings ESP of 0.00% and carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
AMC Networks Inc. (AMCX - Free Report) is slated to report third-quarter 2016 financial numbers before the opening bell. Last quarter, the company posted a negative earnings surprise of 14.3%. Moreover, the company’s earnings lagged the Zacks Consensus Estimate in two of the previous four quarters, with an average miss of 1.7%. (Read more: AMC Networks Q3 Earnings: What's in the Cards?)
AMC Networks owns and operates various cable television stations. It is also engaged in the production of programming and movie content. The company’s 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. Recently, the premiere of The Walking Dead, in its seventh season, witnessed growth in the number of total viewers compared to the season six premiere and hence stood as the number one show on television. In case, the show did not live up to expectations it may prove to be a drag for the company.
AMC Networks carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -5.00%. Earlier, the company had Earnings ESP of -3.00%. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
AMC NETWORKS- A Price, Consensus and EPS Surprise
AMC NETWORKS- A Price, Consensus and EPS Surprise | AMC NETWORKS- A Quote
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Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>