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Media Stocks Q2 Earnings on Aug 5: MEG, SSP, LMCA, HMTV
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With the earnings season nearing its end, forecast of an earnings decline still remains the primary concern though the actual results are not as drab as the initial projections, with the pace of decline moderating. As per the recent Earnings Preview, total S&P 500 earnings are expected to decline 3.4% on 0.4% lower revenues. Additionally, estimates for third-quarter 2016 are starting to lean into the negative territory. However, we anticipate a change in the last quarter of the year, with expectations of growth in earnings. The picture is likely to be better in fiscal 2017.
Coming back to the quarter under review, while the earnings recession is yet to dissipate, let us look at some of the stocks related to the media sector that are due to report their second-quarter 2016 results on Aug 5.
Media General, Inc. (MEG - Free Report) operates as a television broadcasting and digital media company.The company has a Zacks Rank #4 (Sell) and an Earnings ESP of -6.25%. This is because the Most Accurate estimate stands at 15 cents while the Zacks Consensus Estimate is pegged higher at 16 cents. Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
The E. W. Scripps Company (SSP - Free Report) is a diversified media company operating in three reportable segments: newspapers, broadcast television and category television. The company has a Zacks Rank #1 (Strong Buy) and an Earnings ESP of -7.14%. While the Most Accurate estimate stands at 13 cents the Zacks Consensus Estimate stands higher at 14 cents. Although Zacks Rank #1 increases the predictive power of ESP, we need a positive Earnings ESP to be confident of an earnings beat.
The Liberty Media Group is engaged in media, communications and entertainment businesses through its subsidiaries and investments in publicly-traded companies.The company holds a Zacks Rank #3 (Hold) and has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 47 cents. Although Zacks Rank #3 increases the predictive power of ESP, we need a positive Earnings ESP to be confident of an earnings beat. (Read more:What's in Store for Liberty Media in Q2 Earnings?)
Hemisphere Media Group, Inc. operates as an U.S. Hispanic TV/cable networks and content platform. This company has a Zacks Rank #3 and an Earnings ESP of 0.00%. This is because both Most Accurate estimate and the Zacks Consensus Estimate are pegged at 8 cents. As stated earlier, we need a positive Earnings ESP to be confident of an earnings beat.
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Media Stocks Q2 Earnings on Aug 5: MEG, SSP, LMCA, HMTV
With the earnings season nearing its end, forecast of an earnings decline still remains the primary concern though the actual results are not as drab as the initial projections, with the pace of decline moderating. As per the recent Earnings Preview, total S&P 500 earnings are expected to decline 3.4% on 0.4% lower revenues. Additionally, estimates for third-quarter 2016 are starting to lean into the negative territory. However, we anticipate a change in the last quarter of the year, with expectations of growth in earnings. The picture is likely to be better in fiscal 2017.
Coming back to the quarter under review, while the earnings recession is yet to dissipate, let us look at some of the stocks related to the media sector that are due to report their second-quarter 2016 results on Aug 5.
Media General, Inc. (MEG - Free Report) operates as a television broadcasting and digital media company.The company has a Zacks Rank #4 (Sell) and an Earnings ESP of -6.25%. This is because the Most Accurate estimate stands at 15 cents while the Zacks Consensus Estimate is pegged higher at 16 cents. Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
MEDIA GENERAL Price and EPS Surprise
MEDIA GENERAL Price and EPS Surprise | MEDIA GENERAL Quote
The E. W. Scripps Company (SSP - Free Report) is a diversified media company operating in three reportable segments: newspapers, broadcast television and category television. The company has a Zacks Rank #1 (Strong Buy) and an Earnings ESP of -7.14%. While the Most Accurate estimate stands at 13 cents the Zacks Consensus Estimate stands higher at 14 cents. Although Zacks Rank #1 increases the predictive power of ESP, we need a positive Earnings ESP to be confident of an earnings beat.
EW SCRIPPS CO Price and EPS Surprise
EW SCRIPPS CO Price and EPS Surprise | EW SCRIPPS CO Quote
The Liberty Media Group is engaged in media, communications and entertainment businesses through its subsidiaries and investments in publicly-traded companies.The company holds a Zacks Rank #3 (Hold) and has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 47 cents. Although Zacks Rank #3 increases the predictive power of ESP, we need a positive Earnings ESP to be confident of an earnings beat. (Read more:What's in Store for Liberty Media in Q2 Earnings?)
LIBERTY MEDIA-A Price and EPS Surprise
LIBERTY MEDIA-A Price and EPS Surprise | LIBERTY MEDIA-A Quote
Hemisphere Media Group, Inc. operates as an U.S. Hispanic TV/cable networks and content platform. This company has a Zacks Rank #3 and an Earnings ESP of 0.00%. This is because both Most Accurate estimate and the Zacks Consensus Estimate are pegged at 8 cents. As stated earlier, we need a positive Earnings ESP to be confident of an earnings beat.
HEMISPHERE MDA Price and EPS Surprise
HEMISPHERE MDA Price and EPS Surprise | HEMISPHERE MDA Quote
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