The third-quarter earnings season is in its last leg with reports from 84.6% of the S&P 500 companies already out as of Nov 4 (per the latest Earnings Outlook report). The outcome of the season so far has given a decent growth picture, breaking the five-quarter-long lackluster trend. Clearly, this period is quite significant with both earnings and revenues on the growth trajectory.
Per our latest Earnings Outlook, out of the 423 S&P 500 companies that have come up with their quarterly numbers, approximately 72.8% posted positive earnings surprises, while 55.1% beat top-line expectations. According to the report, earnings for the 423 S&P 500 companies that have reported so far are up 3.6% from the same period last year, while revenues have increased 2.4%.
Further, the report projects that earnings for the total S&P 500 companies will improve 3% from the year-ago period with total revenue rising 1.5%. In second-quarter 2016, earnings and revenues for the S&P 500 companies declined 2.8% and 0.2%, respectively.
In the Q3 earnings season, the widely diversified Consumer Discretionary sector has witnessed encouraging earnings. Per the latest report, nearly 74.3% of the Consumer Discretionary companies have already reported their third-quarter results, out of which 73.1% beat earnings and 50% surpassed revenue estimates. Total earnings for these companies climbed 15% while revenues increased 17.1% year over year. Broadcasting stocks form part of the Consumer Discretionary sector.
Among Broadcasting stocks lined up to report third-quarter results on Nov 8, let’s take a sneak peek at four companies.
Liberty Media Corp. (L(MCA - Free Report) : Liberty Media is engaged in media, communications and entertainment businesses through its subsidiaries and investments in publicly-traded companies. The company is based in Englewood, CO. Liberty Media currently carries a Zacks Rank #3 (Hold).
Liberty Media has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 40 cents per share. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Meanwhile, according to our proven model, a company needs the right combination of two key ingredients – a positive earnings ESP and a Zacks Rank #3 or better – to increase the odds of an earnings surprise. Thus, Liberty Media is unlikely to beat the Zacks Consensus Estimate this quarter.
Nexstar Broadcasting Group Inc. (NXST - Free Report) : The company currently owns, operates, programs or provides sales and other services to television stations in the states of Illinois, Indiana, Maryland, Missouri, Montana, Texas, Pennsylvania, Louisiana, Arkansas, Alabama and New York. This company carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
However, the company has an earnings ESP of -8.14% (Most accurate estimate is 79 cents while the Zacks Consensus Estimate is pegged higher at 86 cents). Again, the combination of Zacks Rank #1 and a negative ESP makes surprise prediction difficult. Therefore, Nexstar Broadcasting Group is not likely to beat the Zacks Consensus Estimate this quarter.
Gray Television Inc. (GTN - Free Report) : Gray Television is a communications company headquartered in Atlanta, GA, and currently operates 15 CBS-affiliated television stations, seven NBC-affiliated television stations, seven ABC-affiliated television stations and four daily newspapers. The company currently carries a Zacks Rank #4 (Sell).
Gray Television has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 41 cents. Thus, the company is unlikely to beat the Zacks Consensus Estimate this quarter.
Townsquare Media Inc. (TSQ - Free Report) : The company is a local media and entertainment service provider. It owns and operates radio, digital and live event properties in small to mid-sized markets across the U.S. Townsquare Media currently carries a Zacks Rank #3. Further, It carries an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 67 cents and is not likely to beat the Zacks Consensus Estimate this quarter.
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