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Media Stocks' Nov 5 Earnings Roster: DISCA, NWSA & More
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Media companies’ third-quarter 2020 earnings are expected to have benefited from robust demand for online video content. Closure of movie theaters, theme parks, cruise lines and restrictions on traveling are expected to have driven demand for digital entertainment despite coronavirus-induced production disruption.
Moreover, an improved ad spending environment is expected to benefit media companies this earnings season. Higher political ad spending is also expected to have driven the top line.
Fox’s (FOXA - Free Report) Cable Network Programming revenues increased 3.1% year over year driven by advertising revenue growth of 17% from the year-ago quarter. Moreover, advertising revenues jumped 36.1% sequentially. (Read More: Fox Q1 Earnings Top Estimates, Revenues Rise Y/Y)
Moreover, soaring demand for broadband service benefited Comcast (CMCSA - Free Report) and Charter Communications (CHTR - Free Report) .
Comcast added 633K High-Speed Internet customers to its profile in the third quarter while Charter gained 494K resident Internet users.
Meanwhile, legacy media giants like AT&T and Comcast continue to lose voice, video and Pay TV subscribers due to persistent cord-cutting and stiff competition from streaming services like Netflix, Hulu, HBO, Disney+, Apple TV+ and Amazon Prime.
Sneak Peek Into a Few Upcoming Releases
Investors interested in the media sector are eagerly awaiting earnings releases from industry players like Discovery , News Corporation (NWSA - Free Report) , Nexstar Media (NXST - Free Report) and Roku (ROKU - Free Report) , which are scheduled to report on Nov 5.
Let’s see how things shaped up for these companies prior to announcement.
Discovery’s third-quarter 2020 performance is expected to have benefited from an improving ad spending environment and solid demand for unscripted content. (Read more: Discovery to Report Q3 Earnings: What's in Store?)
Moreover, Discovery has the favorable combination of a Zacks Rank #3 (Hold) and an Earnings ESP of +1.47%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the odds of an earnings beat. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Notably, the Zacks Consensus Estimate for Discovery’s third-quarter earnings has declined by a penny to 68 cents per share in the past 30 days.
An improving ad spending environment is also expected to have benefited News Corporation’s first-quarter fiscal 2021 performance. Rise in paid digital subscriptions and resilient e-book sales are expected to have driven top-line growth. The bottom line is expected to reflect benefits from management’s cost-saving initiatives.
Nevertheless, coronavirus-led disruption is expected to have hurt Dow Jones and News Media segment revenues.
Moreover, News Corporation has an unfavorable combination of a Zacks Rank #2 and an Earnings ESP of 0.00%.
Meanwhile, Nexstar Media Group’s third-quarter results are expected to reflect improved advertising revenues driven by resumption of sports and local programming. Moreover, higher political advertising revenues are a key catalyst.
Further, the launch of News Nation is likely to have driven viewership, as it reached 75 million U.S. TV households on debut.
However, the company has an Earnings ESP of -45.98% and a Zacks Rank #3. Notably, the consensus mark for earnings has moved up 3.4% to $2.43 per share over the past 30 days.
Roku's third-quarter 2020 results are likely to reflect gains from the popularity of its free, ad-supported platform. The Roku Channel is also expected to have aided active accounts growth and attracted advertisers to the platform. Moreover, growth in streaming hours is expected to have boosted TV streaming advertising on Roku’s platform.
However, video ad campaign cancellations, primarily in sectors like travel, quick-serve restaurants, theatrical and automotive, which have been severely hurt by coronavirus-led disruptions, are expected to reflect on the quarterly results. (Read More: ROKU Gears Up to Report Q3 Earnings: What's in the Cards?)
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
Image: Bigstock
Media Stocks' Nov 5 Earnings Roster: DISCA, NWSA & More
Media companies’ third-quarter 2020 earnings are expected to have benefited from robust demand for online video content. Closure of movie theaters, theme parks, cruise lines and restrictions on traveling are expected to have driven demand for digital entertainment despite coronavirus-induced production disruption.
Moreover, an improved ad spending environment is expected to benefit media companies this earnings season. Higher political ad spending is also expected to have driven the top line.
Fox’s (FOXA - Free Report) Cable Network Programming revenues increased 3.1% year over year driven by advertising revenue growth of 17% from the year-ago quarter. Moreover, advertising revenues jumped 36.1% sequentially. (Read More: Fox Q1 Earnings Top Estimates, Revenues Rise Y/Y)
Moreover, soaring demand for broadband service benefited Comcast (CMCSA - Free Report) and Charter Communications (CHTR - Free Report) .
Comcast added 633K High-Speed Internet customers to its profile in the third quarter while Charter gained 494K resident Internet users.
Meanwhile, legacy media giants like AT&T and Comcast continue to lose voice, video and Pay TV subscribers due to persistent cord-cutting and stiff competition from streaming services like Netflix, Hulu, HBO, Disney+, Apple TV+ and Amazon Prime.
Sneak Peek Into a Few Upcoming Releases
Investors interested in the media sector are eagerly awaiting earnings releases from industry players like Discovery , News Corporation (NWSA - Free Report) , Nexstar Media (NXST - Free Report) and Roku (ROKU - Free Report) , which are scheduled to report on Nov 5.
Let’s see how things shaped up for these companies prior to announcement.
Discovery’s third-quarter 2020 performance is expected to have benefited from an improving ad spending environment and solid demand for unscripted content. (Read more: Discovery to Report Q3 Earnings: What's in Store?)
Moreover, Discovery has the favorable combination of a Zacks Rank #3 (Hold) and an Earnings ESP of +1.47%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Discovery, Inc. Price and EPS Surprise
Discovery, Inc. price-eps-surprise | Discovery, Inc. Quote
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Notably, the Zacks Consensus Estimate for Discovery’s third-quarter earnings has declined by a penny to 68 cents per share in the past 30 days.
An improving ad spending environment is also expected to have benefited News Corporation’s first-quarter fiscal 2021 performance. Rise in paid digital subscriptions and resilient e-book sales are expected to have driven top-line growth. The bottom line is expected to reflect benefits from management’s cost-saving initiatives.
Nevertheless, coronavirus-led disruption is expected to have hurt Dow Jones and News Media segment revenues.
Moreover, News Corporation has an unfavorable combination of a Zacks Rank #2 and an Earnings ESP of 0.00%.
News Corporation Price and EPS Surprise
News Corporation price-eps-surprise | News Corporation Quote
Meanwhile, Nexstar Media Group’s third-quarter results are expected to reflect improved advertising revenues driven by resumption of sports and local programming. Moreover, higher political advertising revenues are a key catalyst.
Further, the launch of News Nation is likely to have driven viewership, as it reached 75 million U.S. TV households on debut.
However, the company has an Earnings ESP of -45.98% and a Zacks Rank #3. Notably, the consensus mark for earnings has moved up 3.4% to $2.43 per share over the past 30 days.
Nexstar Media Group, Inc Price and EPS Surprise
Nexstar Media Group, Inc price-eps-surprise | Nexstar Media Group, Inc Quote
Roku's third-quarter 2020 results are likely to reflect gains from the popularity of its free, ad-supported platform. The Roku Channel is also expected to have aided active accounts growth and attracted advertisers to the platform. Moreover, growth in streaming hours is expected to have boosted TV streaming advertising on Roku’s platform.
However, video ad campaign cancellations, primarily in sectors like travel, quick-serve restaurants, theatrical and automotive, which have been severely hurt by coronavirus-led disruptions, are expected to reflect on the quarterly results. (Read More: ROKU Gears Up to Report Q3 Earnings: What's in the Cards?)
Roku, Inc. Price and EPS Surprise
Roku, Inc. price-eps-surprise | Roku, Inc. Quote
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
Click Here, See It Free >>