) is set to release its second-quarter 2014 results before the
opening bell on Jul 31, 2014.
In the last quarter, the company delivered a 5.66% earnings
surprise with positive earnings surprises in three of the last four
quarters of an average beat of 16.25%. Let's see how things are
shaping up for this announcement.
Factors to Consider This Quarter
Starz has a strong portfolio of original TV shows which has
positioned the company as an original content premium cable
channel. Moreover, ratings improvement along with subscriber growth
will likely spur growth for the company in the coming quarters.
On the flip side, rising distribution expenses, stiff
competition from other original content providers and a saturated
U.S. cable TV industry will continue to act as headwinds for the
Our proven model does not conclusively show that Starz is likely
to beat the Zacks Consensus Estimate this quarter. That is because
a stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not
the case here as you will see below. Also note that stocks with
Negative Zacks ESP:
This is because the Most Accurate Estimate stands at 48 cents while
the Zacks Consensus Estimate is higher at 50 cents. This leads to
an ESP of -4.00% for Starz.
Zacks Rank #3 (Hold):
Starz carries a Zacks Rank #3 (Hold) which when combined with a
-4.00% ESP makes surprise prediction difficult .
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.
Discovery Communications, Inc. (
) has an earnings ESP of +1.09% and a Zacks Rank #3.
Live Nation Entertainment, Inc. (
) has an earnings ESP of +31.25% and a Zacks Rank #3.
Six Flags Entertainment Corp. (
) has an earnings ESP of +0.65% and a Zacks Rank #3.
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