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Time Inc (TIME): What Will Q2 Earnings Release Unveil?

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Time Inc. (TIME - Free Report) is slated to report second-quarter 2017 results on Aug 8, before the opening bell. In the last quarter, it reported a negative earnings surprise of 80%. Let’s see how things are shaping up prior to this announcement.

 Zacks Model Shows Unlikely Earnings Beat

 Our proven model does not conclusively show that Time Inc. is likely to beat estimates this quarter. This is because a stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

 Time Inc. has an ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both are pegged at 16 cents. Moreover, the company carries a Zacks Rank #4 (Sell). 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.

Time Inc. Price, Consensus and EPS Surprise

 

Time Inc. Price, Consensus and EPS Surprise | Time Inc. Quote

 Factors Influencing this Quarter

Time Inc. has been focusing on the creation of digital properties and intends to increase digital advertising revenues by enhancing native branded content and video. Further, the company is concentrating on customization of data to aid advertisers target audience more effectively. In this regard, it acquired the assets of Viant. There has been a drastic change in audience preference due to which advertisers have shifted dollars to digital video.

 We observe that total advertising revenue decreased 8% during the first quarter of 2017. Print and other advertising revenue fell 21%, while digital advertising revenue soared 32%. The company is targeting adjacent revenue opportunities, which include Live Media, SI Play, eCommerce and various other products. Time Inc. through acquisitions of – Bizrate Insights, an online survey and subscription marketing company and Adelphic, provider of programmatic advertising platform – is expanding digital presence.

 Stocks with Favorable Combination

 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 Media Group, Inc. (NXST - Free Report) currently has an ESP of +1.09% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

 DISH Network Corporation has an ESP of +4.84% and has a Zacks Rank #3.

 Activision Blizzard, Inc. has an ESP of +12.77% and carries a Zacks Rank #3.

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