Discovery Communications Inc. is scheduled to report second-quarter results on Aug 2, before market opens.
The company posed an earnings surprise of 4.55% in the last quarter. Moreover, it has posted an earnings surprise in three of the last four quarters, with an average surprise beat of 2.98%.
Factors at Play
Discovery is a well recognized name in the entertainment industry and the company’s commitment to steady growth continues to impress. Moreover, it has seen consistent viewership growth over the years and has added new channels to increase market share and compete with peers like CBS Corp. . Discovery has also entered into valuable collaborations with Mediacom, Hulu, Sony Corporation and Cablevision. The company’s efforts toward adapting to new technologies and modes of entertainment such as web-based video streaming is commendable.
While Discovery continues to boost its performance, foreign currency risks may adversely affect the company’s bottom line. Additionally, geographic concentration in the U.S. is a pressing concern.
Earnings Whispers
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 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 61 cents.
Zacks Rank: Discovery has a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
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.
Stocks to Consider
Here is a company you may want to consider as our model shows it has the right combination of elements to post an earnings beat this quarter.
CDK Global Inc. has an earnings ESP of over +4.26% and a Zacks Rank #2.which is scheduled to post earnings on Aug 3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Discovery Communications Inc. is scheduled to report second-quarter results on Aug 2, before market opens.
The company posed an earnings surprise of 4.55% in the last quarter. Moreover, it has posted an earnings surprise in three of the last four quarters, with an average surprise beat of 2.98%.
Factors at Play
Discovery is a well recognized name in the entertainment industry and the company’s commitment to steady growth continues to impress. Moreover, it has seen consistent viewership growth over the years and has added new channels to increase market share and compete with peers like CBS Corp. . Discovery has also entered into valuable collaborations with Mediacom, Hulu, Sony Corporation and Cablevision. The company’s efforts toward adapting to new technologies and modes of entertainment such as web-based video streaming is commendable.
While Discovery continues to boost its performance, foreign currency risks may adversely affect the company’s bottom line. Additionally, geographic concentration in the U.S. is a pressing concern.
Earnings Whispers
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 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 61 cents.
Zacks Rank: Discovery has a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
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.
Stocks to Consider
Here is a company you may want to consider as our model shows it has the right combination of elements to post an earnings beat this quarter.
CDK Global Inc. has an earnings ESP of over +4.26% and a Zacks Rank #2.which is scheduled to post earnings on Aug 3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>