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Will Time Warner's (TWX) Stock Gain Post Q4 Earnings?

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Time Warner Inc. , the media and entertainment company, is slated to report fourth-quarter 2016 results before the market opens, on Feb 8. 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 16.6%. 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 Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Time Warner has an Earnings ESP of +1.68% as the Most Accurate estimate stands at $1.21 and the Zacks Consensus Estimate is pegged lower at $1.19. So the ensuing positive Earnings ESP and a Zacks Rank #3 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 be reflected in the quarter to be reported.

However, decline in overall advertising spending and currency headwinds may adversely impact its performance.

Time Warner Inc. Price, Consensus and EPS Surprise

 

Time Warner Inc. Price, Consensus and EPS Surprise | Time Warner Inc. Quote

Other Stocks Poised to Beat Earnings Estimates

Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Charter Communications, Inc. (CHTR - Free Report) has an Earnings ESP of +1.89% and also carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

CenturyLink, Inc. has an Earnings ESP of +1.79% and carries a Zacks Rank #3.

Viacom, Inc. has an Earnings ESP of +1.21% and currently has a Zacks Rank #3.

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