As we delve deeper into the ongoing earnings season, we note that the fourth quarter of 2016 is all set to attain its best performance in eight quarters. Taking the growth trajectory ahead, the quarter is likely to witness a new earnings record. Further, we remain hopeful of earnings growth (on a year-over-year basis) for the for the second consecutive quarter after five straight quarters of earnings decline.

Per the Earnings Preview as of Feb 3, 2017, earnings for the total S&P 500 companies will improve 6.8% from the year-ago period, with total revenue rising by 3.9%.

As per the report, out of the 275 S&P 500 companies that have come up with their quarterly numbers, approximately 68% posted positive earnings surprises, while 54.5% beat the top-line expectations. Total earnings for these index members were up 6.9% from the year-ago quarter, while revenues increased 4.2%.

The performance of the index is not restricted to a single sector, and of the 16 Zacks sectors, four are expected to witness an earnings decline. Of these, Autos, Transportation and Conglomerates are likely to be a major drag.

However, the Consumer Discretionary sector’s earnings growth looks decent. Total fourth-quarter earnings for the sector are estimated to rise 3.7%, whereas revenues are projected to improve by 12.0%.

So, let’s see what awaits the following media stocks within the Consumer Discretionary sector that are queued up for earnings releases on Feb 8.

Leading media and entertainment company, Time Warner Inc. , is scheduled to report fourth-quarter 2016 results before the opening bell. The company has outperformed the Zacks Consensus Estimate in all of the trailing four quarters, with an average earnings surprise of 16.6%.

Our proven model conclusively shows that Time Warner is likely to beat earnings estimates this quarter. 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. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Time Warner has an Earnings ESP of +1.68% as the Most Accurate estimate stands at $1.21, while the Zacks Consensus Estimate is pegged at $1.19. Further, the company carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The ensuing positive Earnings ESP with a favorable Zacks Rank make us reasonably confident of an earnings beat.

We believe Time Warner’s foray into new markets and digital endeavors augur well for its operational performance. Additionally, the company has been expanding its digital presence to enable consumers to access content from several platforms and devices. Its investments in video content and technology continue to drive results. All these initiatives may be reflected in the quarter to be reported. (Read more: Will Time Warner's Stock Gain Post Q4 Earnings?)

Finally, let’s take a sneak peek at Lions Gate Entertainment Corp. (LGF.A Quick QuoteLGF.A - Free Report) , producer and distributor of motion pictures for theatrical and straight-to-video release. The company is scheduled to report third-quarter fiscal 2017 results after the closing bell. Last quarter, the company posted a negative earnings surprise of 45.8%. However, it recorded an average earnings beat of 205.1% in the trailing four quarters.

Lions Gate Entertainment has an Earnings ESP of -10.00%. This is because the Most Accurate estimate stands at 9 cents, while the Zacks Consensus Estimate is pegged higher at 10 cents. However, the company carries a Zacks Rank #2.

Though a favorable Zacks Rank increases the predictive power, we need to have a positive ESP to be confident about an earnings surprise.

We observed that the Zacks Consensus Estimate for the third quarter and fiscal 2017 has increased four cents to 10 cents and nine cents to 50 cents, respectively, over the past seven days. The Lions Gate’s Television segment looks robust and the movie businesses are boding well. Further, the company seeks strategic acquisitions and alliances to enhance its competitive position, to maximize return, and to build a diversified portfolio for future growth.

However, the escalating cost of motion picture production and marketing in recent years may jeopardize Lions Gate’s margins. Moreover, stiff competition and intensifying currency headwinds might weigh on its performance. (Read more: What's in the Cards for Lions Gate in Q3 Earnings?)

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