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What's in the Cards for Meredith (MDP) in Q4 Earnings?

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Meredith Corporation (MDP - Free Report) , one of the leading media and marketing companies with interests in publishing, broadcasting, integrated marketing and interactive media, is slated to report fourth-quarter fiscal 2016 results on Jul 28.

In the previous quarter, the company posted positive earnings surprise of 15%. Notably, the company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 5.8%. Let’s see how things are shaping up prior to this announcement.

Zacks Model Shows Unlikely Earnings Beat

Our proven model does not conclusively show that Meredith is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Meredith has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.04. The company carries a Zacks Rank #3, but an ESP of 0.00% makes surprise prediction difficult.

Factors This Quarter

Favorable advertising trends in the digital section and recent acquisitions continue to positively influence the company’s performance. This is well reflected from its upbeat guidance. Meredith now projects fourth-quarter fiscal 2016 earnings per share in the range of $1.01–$1.06 and anticipates total revenue to increase in the low- to mid-single digits. The company is focused on bolstering advertising revenues, primarily in the digital space, and is increasingly concentrating on brand licensing, marketing services and eCommerce.

However, with advancing technology, the print media is on a decline. Shift to online is likely to put enormous pressure on Meredith’s magazine portfolio. Though the company is expanding its digital presence, it will take time to complete the metamorphosis.

MEREDITH CORP Price and EPS Surprise


Stocks to Consider

Here are some companies that you may want to consider as our model shows that these to have the right combination of elements to post an earnings beat: 

CBS Corp. (CBS - Free Report) has an Earnings ESP of +1.16% and a Zacks Rank #2 (Buy).

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.

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CBS Corporation (CBS) - free report >>

Expedia Group, Inc. (EXPE) - free report >>

Meredith Corporation (MDP) - free report >>