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CBS Corp. (CBS) Q4 Earnings: Will the Stock Disappoint?
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CBS Corporation is slated to report fourth-quarter 2016 results on Feb 15, after the closing bell. The big question lingering in the investor’s mind now is, whether the company will be able keep its earnings streak alive or not.
In the previous, quarter the company reported earnings beat of 7.1%. Notably, the company has surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average earnings beat of 6.2%. Let’s see how things are shaping up prior to this announcement.
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that CBS is likely to beat earnings estimates 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. The Most Accurate estimate stands at $1.09, while the Zacks Consensus Estimate is pegged higher at $1.10. So the ensuing difference – the Earnings ESP – is of -0.91%. The company carries a Zacks Rank #3, which when combined with an ESP of -0.91%, makes an earnings surprise difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
CBS had earlier stated that advertising is likely to improve further due to an increase in political spending. Additionally, the company highlighted that its non-advertising revenue is improving rapidly. The company anticipates crossing the $1 billion mark in revenues from retransmission consent and reverse compensation in 2016. The company's sustained focus on increasing subscription-based revenues should drive long-term growth. The company has an extensive library of premium content that it monetizes over multiple platforms.
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.
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:
Papa John's International, Inc. (PZZA - Free Report) has an Earnings ESP of +4.55% and also carries a Zacks Rank #2.
Carrols Restaurant Group, Inc. (TAST - Free Report) has an Earnings ESP of +16.67% and carries a Zacks Rank #2.
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CBS Corp. (CBS) Q4 Earnings: Will the Stock Disappoint?
CBS Corporation is slated to report fourth-quarter 2016 results on Feb 15, after the closing bell. The big question lingering in the investor’s mind now is, whether the company will be able keep its earnings streak alive or not.
In the previous, quarter the company reported earnings beat of 7.1%. Notably, the company has surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average earnings beat of 6.2%. Let’s see how things are shaping up prior to this announcement.
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that CBS is likely to beat earnings estimates 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. The Most Accurate estimate stands at $1.09, while the Zacks Consensus Estimate is pegged higher at $1.10. So the ensuing difference – the Earnings ESP – is of -0.91%. The company carries a Zacks Rank #3, which when combined with an ESP of -0.91%, makes an earnings surprise difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
CBS Corporation Price, Consensus and EPS Surprise
CBS Corporation Price, Consensus and EPS Surprise | CBS Corporation Quote
Factors Influencing this Quarter
CBS had earlier stated that advertising is likely to improve further due to an increase in political spending. Additionally, the company highlighted that its non-advertising revenue is improving rapidly. The company anticipates crossing the $1 billion mark in revenues from retransmission consent and reverse compensation in 2016. The company's sustained focus on increasing subscription-based revenues should drive long-term growth. The company has an extensive library of premium content that it monetizes over multiple platforms.
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.
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:
Dollar Tree, Inc. (DLTR - Free Report) has an Earnings ESP of +0.75% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Papa John's International, Inc. (PZZA - Free Report) has an Earnings ESP of +4.55% and also carries a Zacks Rank #2.
Carrols Restaurant Group, Inc. (TAST - Free Report) has an Earnings ESP of +16.67% and carries a Zacks Rank #2.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>