Diversified media conglomerate, Gannett Co., Inc. (GCI - Free Report) is slated to report third-quarter 2016 results on Oct 27. In the previous quarter, the company reported in-line earnings. Notably, in the trailing four quarters, it outpaced the Zacks Consensus Estimate by an average of 38.6%.
Unlikely to Beat Estimates
Our proven model does not conclusively show that Gannett is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Gannett has an Earnings ESP of +29.41% as the Most Accurate estimate stands at 22 cents, while the Zacks Consensus Estimate is pegged at 17 cents. However, the company carries a Zacks Rank #4 (Sell). As it is, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement.
Factors Influencing this Quarter
Gannett is realigning its cost structure and streamlining its operations to increase efficiencies and safeguard its earnings and cash flows from dwindling print advertising revenues. Additionally, it is focused on improving its digital business and has undertaken strategic acquisitions. However, management had earlier stated that margins will remain under pressure in the third quarter due to investments made. Moreover, we observed that the company’s top line has fallen short of the Zacks Consensus Estimate in the last five quarters. Further, the company anticipates headwinds in the form of unfavorable foreign currency translations.
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:
Amazon.com, Inc. (AMZN - Free Report) has an Earnings ESP of +10.47% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
New Media Investment Group Inc. has an Earnings ESP of +35.29% and carries a Zacks Rank #3.
Time Warner Inc. has an Earnings ESP of +1.49% and also carries a Zacks Rank #3.
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Diversified media conglomerate, Gannett Co., Inc. (GCI - Free Report) is slated to report third-quarter 2016 results on Oct 27. In the previous quarter, the company reported in-line earnings. Notably, in the trailing four quarters, it outpaced the Zacks Consensus Estimate by an average of 38.6%.
Unlikely to Beat Estimates
Our proven model does not conclusively show that Gannett is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Gannett has an Earnings ESP of +29.41% as the Most Accurate estimate stands at 22 cents, while the Zacks Consensus Estimate is pegged at 17 cents. However, the company carries a Zacks Rank #4 (Sell). As it is, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement.
Factors Influencing this Quarter
Gannett is realigning its cost structure and streamlining its operations to increase efficiencies and safeguard its earnings and cash flows from dwindling print advertising revenues. Additionally, it is focused on improving its digital business and has undertaken strategic acquisitions. However, management had earlier stated that margins will remain under pressure in the third quarter due to investments made. Moreover, we observed that the company’s top line has fallen short of the Zacks Consensus Estimate in the last five quarters. Further, the company anticipates headwinds in the form of unfavorable foreign currency translations.
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:
Amazon.com, Inc. (AMZN - Free Report) has an Earnings ESP of +10.47% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
New Media Investment Group Inc. has an Earnings ESP of +35.29% and carries a Zacks Rank #3.
Time Warner Inc. has an Earnings ESP of +1.49% and also carries a Zacks Rank #3.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
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 >>
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