Back to top

Image: Bigstock

ViacomCBS (VIAC) to Report Q4 Earnings: What's in the Cards?

Read MoreHide Full Article

ViacomCBS is slated to report fourth-quarter 2020 results on Feb 24.

Markedly, the Zacks Consensus Estimate for fourth-quarter earnings has remained steady at 78 cents per share over the past 30 days, implying growth of 1% from the figure reported in the year-ago quarter.

Moreover, the consensus mark for revenues is pegged at $6.9 billion, suggesting growth of 1.2% from the figure reported in the year-ago quarter.

Notably, in the trailing four quarters, the company’s earnings beat the Zacks Consensus Estimate in three quarters but missed the same once, the average surprise being 8.4%.
Let’s see how things shaped up prior to this announcement.

ViacomCBS Inc. Price and EPS Surprise

ViacomCBS Inc. Price and EPS Surprise

ViacomCBS Inc. price-eps-surprise | ViacomCBS Inc. Quote

Factors to Consider

ViacomCBS’ fourth-quarter results are expected to reflect an improving ad-spending environment, driven by return of live sports globally. Notably, advertising revenues accounted for 35.6% of the company’s top line in the third quarter of 2020.

However, theatrical revenues of ViacomCBS are expected to have taken a hit in the reported quarter due to the closure or reduction in capacity of movie theaters in response to coronavirus.

Delay in new movies until theaters reopen and production delays in television and film programming are expected to negatively impact content-licensing revenues in the to-be-reported quarter.

Nevertheless, a solid portfolio of streaming services (both advertising and subscription-based offerings) including CBS All Access, Showtime OTT, Pluto TV, Noggin and BET+, is expected to have bumped up viewership in the holiday season boosted by social-distancing guidelines.

Markedly, digital subscription video on-demand and live streaming service CBS All Access announced new product features including Kids Mode for families and the addition of more Nickelodeon and Nick Jr. library programming as the service continues its expansion across the ViacomCBS portfolio.

Moreover, Pluto TV’s new distribution agreements with LG and Sony PlayStation in the third quarter is expected to have extended its reach to more than 100 million additional devices worldwide.

Pluto TV’s domestic monthly active users were 28.4 million, up 57% year over year in the third quarter. The platform’s total global MAUs reached 36 million. Pluto TV’s momentum is expected to have continued in the to-be-reported quarter.

Key Q4 Developments

On Nov 25, ViacomCBS announced that it has entered into a definitive agreement to sell its publishing business, Simon & Schuster to Penguin Random House LLC, a wholly owned subsidiary of Bertelsmann SE & Co. KGaA, for $2.17 billion in cash.

What Our Model Suggests

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

ViacomCBS has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

CrowdStrike Holdings Inc. (CRWD - Free Report) has an Earnings ESP of +23.94% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Workday, Inc. (WDAY - Free Report) has an Earnings ESP of +1.21% and carries a Zacks Rank of 2, currently.

Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +0.75% and currently holds a Zacks Rank of 3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Workday, Inc. (WDAY) - free report >>

Etsy, Inc. (ETSY) - free report >>

CrowdStrike (CRWD) - free report >>

Published in