We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will 21st Century Fox (FOXA) Q4 Earnings Be a Letdown?
Read MoreHide Full Article
Twenty-First Century Fox, Inc. (FOXA - Free Report) is scheduled to report fourth-quarter fiscal 2016 results on Aug 3, after the closing bell. The big question facing investors now is, whether the company will be able to deliver a positive earnings surprise in the to-be-reported quarter after posting in-line earnings in the previous two quarters.
Notably, in the trailing four quarters, the company surpassed the Zacks Consensus Estimate by an average of 2%. Let’s see how things are shaping up for this announcement.
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that Twenty-First Century Fox 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.
Twenty-First Century Fox has an Earnings ESP of -2.70% as the Most Accurate estimate stands at 36 cents, while the Zacks Consensus Estimate is pegged higher at 37 cents. Though Twenty-First Century Fox’s Zacks Rank #3 increases the predictive power of ESP, a negative ESP complicates our surprise prediction.
Due to rise in affiliate fees, the company’s Cable Network Programming is expected to report higher revenues. Affiliate fees are the dominant source of revenue for the Cable Network segment as well as a major contributor to total revenues.
However, we note that Twenty-First Century Fox’s international Cable and Film operations continue to be adversely affected by the foreign currency exchange rate. Management had earlier guided that the foreign currency exchange rate will hamper the company’s growth rate by 3% or nearly $200 million in fiscal 2016. It expects adjusted EBITDA between flat to up in the low single-digits for fiscal 2016, in comparison to the previous forecast of an increase in the mid-single-digit range.
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:
Eros International Plc has an Earnings ESP of +7.14% and a Zacks Rank #3.
TiVo Inc. has an Earnings ESP of +15.39% and a Zacks Rank #3.
Time Warner Inc. has an Earnings ESP of +0.87% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Will 21st Century Fox (FOXA) Q4 Earnings Be a Letdown?
Twenty-First Century Fox, Inc. (FOXA - Free Report) is scheduled to report fourth-quarter fiscal 2016 results on Aug 3, after the closing bell. The big question facing investors now is, whether the company will be able to deliver a positive earnings surprise in the to-be-reported quarter after posting in-line earnings in the previous two quarters.
Notably, in the trailing four quarters, the company surpassed the Zacks Consensus Estimate by an average of 2%. Let’s see how things are shaping up for this announcement.
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that Twenty-First Century Fox 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.
Twenty-First Century Fox has an Earnings ESP of -2.70% as the Most Accurate estimate stands at 36 cents, while the Zacks Consensus Estimate is pegged higher at 37 cents. Though Twenty-First Century Fox’s Zacks Rank #3 increases the predictive power of ESP, a negative ESP complicates our surprise prediction.
TWENTY-FST CF-A Price and EPS Surprise
TWENTY-FST CF-A Price and EPS Surprise | TWENTY-FST CF-A Quote
Factors Influencing This Quarter
Due to rise in affiliate fees, the company’s Cable Network Programming is expected to report higher revenues. Affiliate fees are the dominant source of revenue for the Cable Network segment as well as a major contributor to total revenues.
However, we note that Twenty-First Century Fox’s international Cable and Film operations continue to be adversely affected by the foreign currency exchange rate. Management had earlier guided that the foreign currency exchange rate will hamper the company’s growth rate by 3% or nearly $200 million in fiscal 2016. It expects adjusted EBITDA between flat to up in the low single-digits for fiscal 2016, in comparison to the previous forecast of an increase in the mid-single-digit range.
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:
Eros International Plc has an Earnings ESP of +7.14% and a Zacks Rank #3.
TiVo Inc. has an Earnings ESP of +15.39% and a Zacks Rank #3.
Time Warner Inc. has an Earnings ESP of +0.87% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>