) to beat expectations when it reports fourth-quarter 2013
results before the market opens on Nov 14, 2013.
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VIACOM INC-B (VIAB): Free Stock Analysis
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Why a Likely Positive Surprise?
Our proven model shows that Viacom is likely to beat earnings
because it has the right combination of two key ingredients.
The Expected Surprise Prediction or
, which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, stands at +0.69%. This
is a meaningful and leading indicator of a likely positive
Viacom currently has a Zacks Rank #3 (Hold). Note that the stocks
with Zacks Rank #1, 2 or 3 have a significantly higher chance of
beating earnings. The Sell-rated stocks (Zacks Rank #4 and 5)
should never be considered going into an earnings announcement.
The combination of Viacom's Zacks Rank #3 and +0.69% Earnings ESP
makes us confident of a positive earnings beat.
What is Driving the Better-Than-Expected
Viacom benefits from a well-balanced asset mix with entertainment
content at its core. It benefits immensely from its agreement to
disribute digital content to online video streaming companies,
such as Netflix and Hulu.
Viacom is hopeful that it will be able to expand its digital
content distribution deals, both in the U.S. and in the
international markets going forward. Moreover, Viacom is
generating strong free cash flow, enabling the company to
maximize its shareholders' wealth through dividend payments and
solid share repurchases.
Other Stocks to Consider
Other companies you may consider on the basis of our model, which
have the right combination of elements to post an earnings beat
this quarter are as follows:
) with Earnings ESP of +1.56% and a Zacks Rank #1 (Strong Buy).
) with Earnings ESP of +16.67% and a Zacks Rank #2 (Buy).
) with Earnings ESP of +4.76% and a Zacks Rank #2 (Buy).