We have reached almost the end of the Q4 earnings season, with 358 S&P 500 members (accounting for 71.6% of the index’s total membership) having reported their results as of Friday, Feb 10, according to the latest Earnings Preview.
With another 53 index members on deck to report results this week, we are about to see numbers from more than 80% of the index’s members. Total earnings for the index members that have reported are up 6.1% year over year, on 4.6% higher revenues, with 69% beating EPS estimates and 54.7% coming ahead of top-line expectations.
On the whole, we anticipate the pace of growth to improve steadily this earnings season. In fact, our latest data projects that earnings for the S&P 500 companies are now on track to grow 7.5% from the year-ago period on 3.9% higher revenues. This is comparable to earnings growth of 3.7% in Q3, on 2.2% higher revenues.
Cable TV Sector at a Glance
As per the Zacks Industry categorization, the ‘Cable TV’ industry falls under the broader ‘Consumer Discretionary’ sector, which is one of the 16 Zacks sectors.
Our latest Earnings Preview article states that roughly 71.4% of Consumer Discretionary stocks have reported results for this quarter, recording a 4.6% rise in earnings and a 5.6% upside in revenues on a year-over-year basis. Of these companies, 76% beat EPS estimates and 68% came ahead of top-line expectations.
We predict that earnings of the Consumer Discretionary space are on track to be up 7.6% in the quarter on 11.8% higher revenues than last year.
Cable TV Stocks to Release Q4 Earnings Around Feb 16
Let’s see what’s in store for these four cable companies that are expected to report their fourth-quarter numbers shortly.
Charter Communications Inc. CHTR, the second largest cable MSO in the U.S., is slated to report fourth-quarter 2016 results on Feb 16, before the opening bell.
Last quarter, the company posted a positive earnings surprise of 11.29%. However, the company’s earnings lagged the Zacks Consensus Estimate in two of the previous four quarters, with an average miss of 142.37%.
Our proven model does not conclusively show that Charter Communications is likely to beat on earnings in the to-be-reported quarter. This is because inspite of carrying a Zacks Rank #3 (Hold), Charter Communications currently has an Earnings ESP of -17.93%, with the Most Accurate estimate being 87 cents and the Zacks Consensus Estimate pegged at $1.06 cents (read more: Will Charter Communications Surprise in Q4 Earnings?)
Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Liberty Global plc. LBTYA , a leading cable TV operator in Europe and Latin America, is scheduled to report fourth-quarter 2016 results on Feb 16, before market open.
In the year-ago quarter, the company posted a negative earnings surprise of 1700.00%. Moreover, the company’s earnings lagged the Zacks Consensus Estimate in two of the previous four quarters, with an average miss of 835.56%.
Presently, Liberty Global carries a Zacks Rank #2 and has an Earnings ESP of 0.00%.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hence, as per our quantitative model, we cannot conclusively predict an earnings beat for the company (read more: Will Liberty Global Disappoint this Earnings Season?).
Liberty LiLAC Group LILA is a cable company based in United States. The company provides video, broadband Internet, fixed-line telephony and mobile services primarily in Europe, Chile, Puerto Rico and internationally.
The company has a Zacks Rank #3 which according to our model increases the odds of an earnings surprise. Meanwhile, the company’s Earnings ESP of 0.00% (Most Accurate estimate and Zacks Consensus Estimate stand at 38 cents) for the fourth quarter of 2016 dims the possibility of a beat. Weakening the chance of an earnings beat further is the company’s earnings have missed the Zacks Consensus Estimate over the last four trailing quarters, with an average of 1417.43%.
DISH Network Corp. DISH – the second largest satellite TV operator in the U.S. – is expected to report fourth-quarter 2016 financial numbers around Feb 16.
Last quarter, DISH Network posted a negative earnings surprise of 7.25%. However, the company’s earnings surpassed the Zacks Consensus Estimate in three of the previous four quarters, with an average beat of 114.29%. Weakening the chance of an earnings beat further is the company’s Zacks Rank #4. Hence, as per our quantitative model, we cannot conclusively predict an earnings beat for the company.
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