Liberty Global Inc.
) is set to release its fourth-quarter fiscal 2013 results after
the opening bell on Feb 13, 2014.
In the last quarter, the company delivered a negative 80.43%
earnings surprise. Let's see how things are shaping up for this
Factors to be Considered This Quarter
Liberty Global's revenues will continue to benefit from a 'triple
play' of video, broadband and telephone, as it signs up more
"bundled" customers in Europe and Latin America. Liberty Global
recently launched a hybrid IP video gateway called "Horizon TV"
in five countries.
The new web-based hybrid modem includes an open software
developer platform and application store. Such value-added
services will continue to drive subscriber growth for the
On the flip side, Liberty Global's continuous acquisitions may
lead to integration risks and a highly leveraged balance sheet.
The company predominantly operates in Europe, which at present is
economically the most vulnerable. Ongoing debt crisis in several
European countries may significantly affect the future prospect
of Liberty Global.
Several European broadband service providers are gradually
deploying high-speed DSL and Fiber-to-the-Home networks, making
the industry extremely competitive. In addition, we expect more
cash-strapped consumers to downsize existing services, resulting
in subscriber loss.
Our proven model does not conclusively show that Liberty Global
is likely to beat the Zacks Consensus Estimate this quarter. This
is because a stock needs to have both a positive
and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this
to happen. Unfortunately, this is not the case here as elaborated
below. The Sell-rated stocks (#4 and 5) should never be
considered going into an earnings announcement.
Zacks ESP: The Most Accurate estimate and the Zacks Consensus
Estimate are poised at 38 cents. Hence, the ESP is 0.00%.
Zacks Rank #3 (Hold): Liberty Global's Zacks Rank #3 decreases
the predictive power of ESP.
We caution investors against the stock going into the earnings
announcement, as a Zacks Earnings ESP of 0.00% combined with a
Zacks Rank #3 lowers the possibility of an earnings surprise for
Other Stocks to Consider
Here are some other companies to consider as our model shows
they have the right combination of elements to post an earnings
beat this quarter.
) has Earnings ESP of +25.00% and carries a Zacks Rank #3.
Shaw Communications Inc.
) has Earnings ESP of +2.63% and carries a Zacks Rank #3.
DIRECTV (DTV): Free Stock Analysis Report
LIBERTY GLBL-A (LBTYA): Free Stock Analysis
SHAW COMMS-CL B (SJR): Free Stock Analysis
TIVO INC (TIVO): Free Stock Analysis Report
To read this article on Zacks.com click here.
) has Earnings ESP of +1.56% and carries a Zacks Rank #3.