The overall earnings scenario, so far in the third-quarter cycle, has been encouraging. As more companies are coming up with their quarterly numbers, we believe this might be the first quarter of positive earnings growth after five consecutive quarters of earnings decline. With the key players scheduled to report earnings this week, our latest Earnings Outlook predicts earnings growth of 2.1% year over year on the back of 1.4% higher revenues. Moreover, we expect the trend to continue in the upcoming quarters.
While the initial fears of continued ‘earnings recession’ are gradually dissipating, let us take a look at three cable stocks that are due to report their quarterly numbers on Nov 3.
Charter Communications, Inc. (CHTR - Free Report) is a leading broadband communications company and the fourth largest cable operator in the U.S. This Zacks Rank #4 (Sell) stock has an Earnings ESP of +22.58% as the Most Accurate estimate stands at 76 cents while the Zacks Consensus Estimate is pegged at 62 cents. Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement. (Read more: Charter Communications: Earnings Preview for Q3)
Liberty Global plc (LBTYA - Free Report) owns interests primarily in broadband distribution and content companies globally. The company, also a Zacks Rank #4 stock, has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of a penny. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Meanwhile, the combination of a Zacks Rank #4 and 0.00% ESP makes an earnings beat unlikely for Liberty Global.
Liberty LiLAC Group (LILA - Free Report) provides video, broadband Internet, fixed-line telephony and mobile services. The company has a Zacks Rank #3 (Hold) which according to our model increases the odds of an earnings surprise. Meanwhile, the company’s Earnings ESP of 0.00% (Most Accurate estimate and Zacks Consensus Estimate stand at a loss of 7 cents) for the second quarter of 2016 dims possibilities of a beat.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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