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The earnings season is in full swing with more and more companies reporting their financial results everyday. So far, 62% of the S&P 500 members have reported earnings and as many as 130 companies enlisted in the S&P 500 index are slated to report their results this week.

Per the latest Zacks Earnings Trend report, out of the 310 S&P 500 members that have released their quarterly results, approximately 71.9% have posted positive earnings surprises. This is because of extremely low estimates at the start of this season as 2016 commenced on a dismal note. This, therefore, reflects an improvement in the overall corporate earnings picture. However, overall earnings and revenues for these companies have witnessed a year-over-year decline of 7.2% and 2.4%, respectively. Nonetheless, more than 47.7% of the companies have managed to surpass both earnings and revenue estimates.

Taking into account the results of 310 S&P 500 members that have reported and estimates for 190 S&P 500 companies that are yet to announce results, total earnings and revenues are expected to see a year-over-year decrease of 7.3% and 1.1%, respectively.

Thus far, the earnings picture of the movie production and distribution, entertainment and media space has been a mixed one. AMC Entertainment Holdings Inc. (AMC - Free Report) Q1 adjusted earnings per share of 27 cents handily beat the Zacks Consensus Estimate of 21 cents. IMAX Corporation’s (IMAX - Free Report) earnings per share of 14 cents also marched past the Zacks Consensus Estimate of 9 cents. However, Viacom, Inc. (VIAB - Free Report) reported earnings 76 cents per share that missed the Zacks Consensus Estimate by a couple of cents.

This week, two major movie stocks Twenty-First Century Fox, Inc. (FOXA - Free Report) and Time Warner Inc. (TWX - Free Report) will be reporting earnings. Let’s have a look at what might be in store for them.

Twenty-First Century Fox is slated to report fiscal Q3 results on May 4, after the closing bell. Notably, in the previous three out of four quarters, the company surpassed the Zacks Consensus Estimate with a positive earnings surprise of 4%. Management expects Cable Network Programming to drive the company’s fiscal 2016 financial performance on the back of rising affiliate fees. Affiliate fees are the dominant source of revenues for the Cable Network segment and also account for a major portion of the total revenue. In the past few months, the company’s Fox Business Network (“FBN”) organized the Grand Old Party’s (“GOP”) presidential debates which turned out to be a grand success.

According to Nielsen Media Research, FBN achieved new highs in viewership in the first three months of 2016. Higher ratings will not only increase the company’s advertising revenues but help to boost subscriber growth.

However, the company’s international Cable and Film operations may be negatively impacted by foreign currency exchange rate.

Twenty-First Century Fox carries a Zacks Rank #3 (Hold) and has an Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter is pegged at 47 cents. Though our initial analysis indicated an earnings beat, the company’s current 0.00% ESP has complicated our surprise prediction. (Read more: Twenty-First Century Q3 Earnings: What's in Store?).

Media and entertainment company, Time Warner, is expected to report Q1 results before the market opens on May 4. In the trailing four quarters, the company’s earnings outperformed the Zacks Consensus Estimate by an average of 12.5%. We believe that Time Warner’s foray into new markets and digital endeavors augur well for its operational performance. We also remain optimistic about the company’s focus on original programming, cost reduction and increasing investments in key areas. Additionally, the company has been expanding its digital presence to enable consumers to access content from several platforms and devices. The company's investments in video content and technology continued to drive results. All these initiatives should have a favorable impact on the quarter to be reported.

Time Warner carries a Zacks Rank #3 and has an Earnings ESP of +1.55%. The Zacks Consensus Estimate for the quarter is pegged at $1.29. (Read more: Time Warner: Stock Poised to Beat Earnings in Q1?).

Keep an eye on our full earnings articles to see how these companies finally fared!

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