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CBS Corp. (CBS) to Report Q3 Earnings: What's in Store?

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CBS Corporation is slated to report third-quarter 2016 results on Nov 3, after the closing bell. The big question lingering in the investor’s mind now is, whether the company will be able to keep its earnings streak alive or not.

In the previous quarter, the company reported an earnings beat of 8.1%. Notably, the company has surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average earnings beat of 6.6%. Let’s see how things are shaping up prior to this announcement.

Likely Earnings Beat in the Cards

Our proven model does not conclusively show that CBS 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. CBS has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 98 cents. The company carries a Zacks Rank #3, which increases the predictive power of ESP but an ESP of 0.00% makes surprise prediction difficult.

Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

Factors Influencing this Quarter

CBS Corporation’s sustained focus on increasing subscription-based revenues and increased political spending should drive the top line in the quarter to be reported. Earlier, the company had also said that it anticipates increased political advertising in the latter half of the year which in turn will favorably impact its performance. Further, it has said that TV stations are pacing to be up high-single digits, buoyed by political advertising. Additionally, radio is also expected to do well in third-quarter 2016, backed by an increase in political spending.

However, the media industry is highly competitive and CBS faces intense competition from other broadcast radio and television stations, cable television networks and motion picture studios in the market in which it operates. This may weigh on the company’s performance.

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:

Nexstar Broadcasting Group, Inc. (NXST - Free Report) has an Earnings ESP of +12.64% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1  Rank stocks here.

Starz has an Earnings ESP of +19.23% and a Zacks Rank #3.

Time Warner Inc. has an Earnings ESP of +0.74% and a Zacks Rank #3.

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