As we approach of the final leg of the earnings season, the defining factor remains the improvement of earnings compared to the last few quarters. Though the market consensus still maintains a dreary look as the earlier presumption of the earnings growth remaining in the negative seems the most likely scenario signaling in the fifth straight quarter of negative earnings growth.
As per the recent Earnings Preview, total S&P 500 earnings for the quarter is expected to decline by 3.4% on the back of 0.4% lower revenues. To add to the woes, the earnings growth estimates for the succeeding quarter appear to be leaning into that negative territory as well making matters worse. Conversely, the forecasts of positive earnings growth in the last quarter of the year which is likely scale even higher in 2017 make for the silver lining.
Broadcast Companies Stocks in Focus
At present, the broadcast industry ranks 203 out of 265 industries classified under the Zacks Industry Rank system. This industry’s bottom of the pile position makes its outlook a negative one. The primary headwind that plagues this industry is high programming cost for its content creation. Additionally, passing on such escalation in cost to pay TV players and video streamers have been troubling in lately resulting in deadlock over agreement of carriage renewal fees.
We focus on three broadcasting companies who are scheduled to report their financial results on Aug 3.
NTN Buzztime Inc. is a leading developer, publisher and distributor of interactive entertainment for massive audiences on numerous consumer platforms. The company carries a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. This is because both Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 50 cents. According to our proven model, a company needs the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #3 or better – to increase the odds of an earnings surprise. Thus, NTN Buzztime doesn’t conclusively show that it is likely to beat the Zacks Consensus Estimate this quarter.
Entravision Communications Corporation (EVC - Free Report) is a diversified media company utilizing a combination of television, radio, outdoor and publishing operations to reach Hispanic consumers in the United States. Entravision has a combination of Zacks Rank #3 and an Earnings ESP of 0.00%. This is because both Most Accurate estimate and the Zacks Consensus Estimate are pegged at 7 cents. Although Zacks Rank #3 increases the predictive power of ESP, we need a positive Earnings ESP to be confident of an earnings beat and hence Entravision doesn’t conclusively show that it is likely to beat the Zacks Consensus Estimate this quarter.
Sinclair Broadcast Group, Inc. (SBGI - Free Report) The company has a Zacks Rank #4 (Sell) and an Earnings ESP of -1.85%. This is because the Most Accurate estimate currently stands at 53 cents while the broader Zacks Consensus Estimate is pegged at 54 cents. Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement.
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 >>
As we approach of the final leg of the earnings season, the defining factor remains the improvement of earnings compared to the last few quarters. Though the market consensus still maintains a dreary look as the earlier presumption of the earnings growth remaining in the negative seems the most likely scenario signaling in the fifth straight quarter of negative earnings growth.
As per the recent Earnings Preview, total S&P 500 earnings for the quarter is expected to decline by 3.4% on the back of 0.4% lower revenues. To add to the woes, the earnings growth estimates for the succeeding quarter appear to be leaning into that negative territory as well making matters worse. Conversely, the forecasts of positive earnings growth in the last quarter of the year which is likely scale even higher in 2017 make for the silver lining.
Broadcast Companies Stocks in Focus
At present, the broadcast industry ranks 203 out of 265 industries classified under the Zacks Industry Rank system. This industry’s bottom of the pile position makes its outlook a negative one. The primary headwind that plagues this industry is high programming cost for its content creation. Additionally, passing on such escalation in cost to pay TV players and video streamers have been troubling in lately resulting in deadlock over agreement of carriage renewal fees.
We focus on three broadcasting companies who are scheduled to report their financial results on Aug 3.
NTN Buzztime Inc. is a leading developer, publisher and distributor of interactive entertainment for massive audiences on numerous consumer platforms. The company carries a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. This is because both Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 50 cents. According to our proven model, a company needs the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #3 or better – to increase the odds of an earnings surprise. Thus, NTN Buzztime doesn’t conclusively show that it is likely to beat the Zacks Consensus Estimate this quarter.
Entravision Communications Corporation (EVC - Free Report) is a diversified media company utilizing a combination of television, radio, outdoor and publishing operations to reach Hispanic consumers in the United States. Entravision has a combination of Zacks Rank #3 and an Earnings ESP of 0.00%. This is because both Most Accurate estimate and the Zacks Consensus Estimate are pegged at 7 cents. Although Zacks Rank #3 increases the predictive power of ESP, we need a positive Earnings ESP to be confident of an earnings beat and hence Entravision doesn’t conclusively show that it is likely to beat the Zacks Consensus Estimate this quarter.
Sinclair Broadcast Group, Inc. (SBGI - Free Report) The company has a Zacks Rank #4 (Sell) and an Earnings ESP of -1.85%. This is because the Most Accurate estimate currently stands at 53 cents while the broader Zacks Consensus Estimate is pegged at 54 cents. Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement.
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 >>
Get the latest research report on SBGI - FREE
Get the latest research report on EVC - FREE