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Media Stocks Q1 Earnings to Watch on Apr 26: DISH, TV, CETV

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We have entered the heart of the Q1 earnings season, with almost 800 companies, including 191 S&P 500 members lined up to report their results. By the end of this week, we will have crossed the halfway mark in the Q1 reporting cycle, at least for the S&P 500 index. This week, we expect a clearer picture of overall earnings.

As per the latest Earnings Preview, 95 S&P 500 members (accounting for 24.9% of the index’s total membership) reported their first-quarter earnings results as of Apr 21. Total earnings for these companies are up 14.3% on 4.6% higher revenues, with 72.6% beating EPS estimates and 62.1% beating revenue estimates. The proportion of companies beating both EPS and revenue estimates was 51.6%.

For Q1 as a whole, we anticipate the pace of growth to improve steadily. In fact, our latest scorecard projects that earnings for the S&P 500 companies are now on track to grow 9.1% from the year-ago period on 6.0% higher revenues. This is compares favorably with earnings growth of 7.4% in Q4, on 4.8% higher revenues.

Media Sector Stocks at a Glance

As per the Zacks Industry categorization, the ‘Media Sector’ falls under the broader Consumer Discretionary sector, one of the 16 Zacks sectors.

Our last Earnings Preview stated that roughly 14.3% of the Consumer Discretionary companies (accounting for 17.3% of the index’s total membership) that have reported results recorded a 19.8% rise in earnings and a 7.4% upside in revenues on a year-over-year basis. Moreover, we believe that earnings of the Consumer Discretionary space are on track to be up 3.6% in the quarter on 11.3% higher revenues than last year.

The Media tycon Comcast Corp. (CMCSA - Free Report) will also release its first-quarter 2017 results on Apr 27, 2017.

Media Stocks’ Expected Q1 Earnings Release on Apr 26

Let’s see what’s in store for these media companies that are expected to report first-quarter 2017 numbers on Apr 26.

DISH Network Corp. – the second largest satellite TV operator in the U.S. – is expected to report first-quarter 2017 financial numbers before the opening bell on Apr 26.

Last quarter, DISH Network delivered a positive earnings surprise of 6.06%. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in three of the previous four quarters, with an average beat of 11.74%.

However, our proven model does not conclusively show that DISH Network 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.

DISH Network has an Earnings ESP of -1.49% since the Most Accurate estimate stands at 66 cents while the Zacks Consensus Estimate is pegged higher at 67 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

DISH Network Corporation Price and EPS Surprise

 

DISH Network Corporation Price and EPS Surprise | DISH Network Corporation Quote

Despite a favorable Zacks Rank, we cannot predict an earnings beat for the company in the to-be-reported quarter (Read more: DISH Network Q1 Earnings: Is a Surprise in Store?).

Mexican pay-TV and media giant Grupo Televisa SA (TV - Free Report) is set to release first-quarter 2017 results, after market close on Apr 26, 2017.

The company‘s earnings lagged the Zacks Consensus Estimate in two of all the previous four quarters, with an average miss of 61.46%.

However, Grupo Televisa has an Earnings ESP of +33.33%. This is because the Most Accurate estimate is pegged at 16 cents while the Zacks Consensus Estimate stands at 12 cents. Despite, a positive ESP, the company’s current Zacks Rank #5 (Strong Sell) weakens the odds.

Grupo Televisa S.A. Price and EPS Surprise

 

Grupo Televisa S.A. Price and EPS Surprise | Grupo Televisa S.A. Quote

We caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Headquartered in Hamilton, Bermuda, Broadcast Radio and Television stock - Central European Media Enterprises Ltd. is slated to release first-quarter 2017 results, before the market opens on Apr 26.

Notably, the company has a mixed record of earnings surprises in the trailing four quarters, with an average beat of 11.11%. In the last reported fourth quarter 2016, the company’s bottom line matched the Zacks Consensus Estimate.

Central European Media Enterprises has a Zacks Rank #3 which increases the predictive power of ESP but its 0.00% ESP (both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 4 cents per share) makes surprise prediction difficult.

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