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CBS Corp (CBS) Q2 Earnings May Beat: Will the Stock Gain?

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CBS Corporation (CBS - Free Report) , a mass media company, is slated to report second-quarter 2016 results on Jul 28. The question lingering in investors’ minds now is, whether the company will be able to continue with its positive earnings surprise streak in the quarter to be reported. In the trailing four quarters, it outperformed the Zacks Consensus Estimate by an average of 5.3%. Let’s see how things are shaping up for this announcement.

Likely Earnings Beat in the Cards

Our proven model shows that CBS Corporation is likely to beat earnings estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. The Most Accurate estimate stands at 87 cents, while the Zacks Consensus Estimate is pegged at 86 cents. So the ensuing +1.16% ESP and the company’s Zacks Rank #2 (Buy) make us reasonably confident of an earnings beat.

Factors Influencing this Quarter

CBS Corporation’s sustained focus on increasing subscription-based revenues should drive growth in the quarter to be reported. The company has an extensive library of premium content that it monetizes over multiple platforms. Moreover, keeping up with customer demands, it had introduced over-the-top services, namely CBS All Access and CBSN. The company also launched an independent streaming service for its premier channel, Showtime.

CBS Corporation highlighted that retransmission consent and reverse compensation are expected to exceed the $2 billion mark in 2020, and is on track to hit $1 billion in 2016, a year earlier than anticipated. Additionally, several strategic deals with Sinclair, AT&T, Nexstar and others have positioned CBS Corporation favorably, enabling it to meet the retransmission targets much ahead of schedule.

CBS CORP Price, Consensus and EPS Surprise

CBS CORP Price, Consensus and EPS Surprise | CBS CORP Quote

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:

Time Warner Inc. has an Earnings ESP of +0.87% and a Zacks Rank #3 (Hold).

Expedia Inc. (EXPE - Free Report) has an Earnings ESP of +6.82% and a Zacks Rank #3.

TiVo Inc. (TIVO - Free Report) has an Earnings ESP of +15.39% and a Zacks Rank #3.

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CBS Corporation (CBS) - free report >>

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