Cablevision Systems Corporation
), a leading media and telecommunications company is set to
announce its first-quarter 2014 financial numbers before the
opening bell on May 8, 2014.
Why a Likely Positive Surprise?
Our proven model shows that Cablevision Systems is likely to
beat earnings because it has the perfect combination of two key
, which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, stands at +100%. This
is because the Most Accurate estimate stands at 4 cents, whereas
the Zacks Consensus Estimate is pegged at 2 cents. A favorable
Zacks ESP serves as a meaningful and leading indicator of a
likely positive earnings surprise.
Cablevision Systems currently has a Zacks Rank #3 (Hold). Note
that stocks with Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a
significantly higher chance of beating earnings estimate.
Conversely, the Sell-rated stocks (Zacks Rank #4 and 5) should
never be considered going into an earnings announcement.
The combination of Cablevision Systems' Zacks Rank #3 and
+100% ESP makes us reasonably confident in looking for a positive
earnings beat on May 8.
What is Driving the Better-than-Expected
We expect a healthy performance from Cablevision owing to
improving video churn rate and addition of new services. The
company should also reap benefits from its recent initiation of
offering multi-tuner, multi-room DVR functionality for their
broadband consumers. Recently, the company announced the addition
of the cooking channel of Scripps Networks Interactive along with
DIY Network to its Optimum TV lineup.
Management forecasted that adjusted operating cash flow is
expected to grow in high-single digit to low-double digit
percentage in the first quarter of 2014. For fiscal 2014 as well,
the company expects moderate cash flow growth.
Other Stocks to Consider
Here are other companies you may want to consider as our model
shows these have the right combination of elements to post an
earnings beat this quarter:
), with earnings ESP of +21.43% and a Zacks Rank #2 (Buy).
Constant Contact, Inc.
), with earnings ESP of +20.0% and a Zacks Rank #2 (Buy).
AMC Networks Inc.
), with earnings ESP of +0.89% and a Zacks Rank #3 (Hold).
AMC NETWORKS- A (AMCX): Free Stock Analysis
BLACKBERRY LTD (BBRY): Free Stock Analysis
CONSTANT CONTAC (CTCT): Free Stock Analysis
CABLEVISION SYS (CVC): Free Stock Analysis
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