Cablevision Systems Corporation
) to beat earnings when the company reports its second quarter
financial numbers on Aug 5, 2014, before the opening bell.
Last quarter, the company's earnings surpassed the Zacks
Consensus Estimate by a substantial 150%. Moreover, the company has
outpaced the Zacks Consensus Estimate in three of the past four
quarters, with an average earnings surprise of 88.8%. Let's see how
things are shaping up for this announcement.
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 +33.33%. This
is because the Most Accurate estimate stands at 20 cents, whereas
the Zacks Consensus Estimate is pegged at 15 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 estimates.
Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be
considered going into an earnings announcement.
The combination of Cablevision Systems' Zacks Rank #3 and
+33.33% ESP makes us reasonably confident of a positive earnings
beat on Aug 5.
What is Driving the Better-than-Expected
Cablevision has undertaken several initiatives to enhance the
quality of its video offerings. During the last reported quarter,
the company extended its TV to GO services to more than 100
networks. Moreover, management has revamped Cablevision's Spanish
language programming and sports and entertainment packages. All
these initiatives should drive the company's revenues higher in the
On the flip side, Cablevision continues to lose video
subscribers. We believe that stiff competition from satellite TV
and telecom operators coupled with mounting programming expenses
will continue to act as margin headwinds in the quarters to
Other Stocks to Consider
Here are some 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:
Dish Network Corp. (
) has an earnings ESP of +15.39% and holds a Zacks Rank #3.
Windstream Holdings, Inc. (
) has an earnings ESP of +12.50% and holds a Zacks Rank #2.
RigNet, Inc. (
) has an earnings ESP of +6.25% and carries a Zacks Rank #3.
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DISH NETWORK CP (DISH): Free Stock Analysis
CABLEVISION SYS (CVC): Free Stock Analysis
WINDSTREAM HLDG (WIN): Free Stock Analysis
RIGNET INC (RNET): Free Stock Analysis Report
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