Time Warner Cable Inc.
) is set to release its fourth-quarter fiscal 2013 results before
the opening bell on Jan 30, 2014.
In the last quarter, the company delivered a 3.05% earnings
surprise. Let's see how things are shaping up for this
Factors to be Considered this Quarter
Continuous deployment of the DOCSIS 3.0 technology across its
footprints coupled with rate hikes and launch of popular sports
channels in the U.S. will drive Time Warner Cable's top-line
growth, while moving ahead. Moreover, signing deals with
different sports majors and the launch of several devices will
further act as tailwinds for the company.
On the downside, persistent loss of video subscribers remains the
primary cause of concern for Time Warner Cable as customers are
opting for cheaper video streaming service providers like
Netflix, Hulu.Com and YouTube.
Our proven model does not conclusively show that Time Warner
Cable 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.
This is because the Most Accurate estimate is poised at 67 cents
while the Zacks Consensus Estimate stands at 68 cents. This leads
to an ESP of -1.16% for Time Warner Cable.
Zacks Rank #3 (Hold):
Time Warner Cable's Zacks Rank #3, decreases the predictive power
We caution investors against the stock going into the earnings
announcement, as a Zacks Earnings ESP of -1.16% combined with a
Zacks Rank #3 lowers the possibility of an earnings surprise.
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
) has Earnings ESP of +33.33% and carries a Zacks Rank #3.
Shaw Communications Inc.
) has Earnings ESP of +2.63% and carries a Zacks Rank #3.
) has Earnings ESP of +2.34% and carries a Zacks Rank #3
DIRECTV (DTV): Free Stock Analysis Report
SHAW COMMS-CL B (SJR): Free Stock Analysis
TIVO INC (TIVO): Free Stock Analysis Report
TIME WARNER CAB (TWC): Free Stock Analysis
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