Liberty Media Corporation
) to beat expectations when it reports fourth-quarter 2013
results on Feb 28, before the opening bell.
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Why a Likely Positive Surprise?
Our proven model shows that Liberty Media is likely to beat
earnings because it has the right combination of two key
Earnings ESP, which represents the difference between the Most
Accurate estimate and the Zacks Consensus Estimate, stands at
+62.96%. This is a meaningful and leading indicator of a likely
positive earnings surprise.
Liberty Media currently has a Zacks Rank #3 (Hold). Note that
stocks with Zacks Ranks of #1, 2 or 3 have a significantly higher
chance of beating earnings.
The combination of Liberty Media's Zacks Rank #3 and +62.96% ESP
makes us confident of positive earnings beat this release.
What is Driving the Better-Than-Expected
Liberty Media is steadily restructuring its business model,
targeting to control several subscription-based businesses. The
company has entered the cable TV industry and management is
aggressively trying to consolidate its foothold in the pay-TV
However, Liberty Media's businesses are susceptible to rapid
technological changes. Large cable TV operators are increasingly
deploying digital TV networks, which are rapidly gaining market
traction. This may adversely impact the channel positioning of
Liberty Media's networks.
Notably, the company recently expressed its intention to take
full control of SIRIUS XM Radio Inc., the largest satellite radio
entertainment provider in the U.S. At present, Liberty Media
holds approximately 53% of SIRIUS XM. The decision to acquire a
100% ownership in SIRIUS XM is viewed as Liberty Media's attempt
to consolidate its position in the U.S. cable TV industry.
Other Stocks to Consider
Other companies you may want to consider on the basis of our
model which shows that these have the right combination of
elements to post an earnings beat this quarter include:
Grupo Televisa, S.A.B.
) with earnings ESP of +10.53% and a Zacks Rank #3.
) with earnings ESP of +3.57% and a Zacks Rank #3.
NII Holdings Inc.
) with earnings ESP of +17.71% and a Zacks Rank #3.