Pure-play lifestyle cable network company
) is set to release its fourth-quarter 2012 results before the
opening bell on Feb 7, 2013.
Last quarter, the company delivered a 4% positive earnings
surprise. Let's see how things are shaping up for this
Factors to be Considered this Quarter
The lifestyle media segment, which represents 97.5% of the
company revenue, is expected to deliver positive results on the
back of improved ratings for food and home and Garden television
(HGTV) and continuous progress in the travel business. Systematic
share buyback program of the company is further expected to
Scripps generates 65% of its revenue from marketing and
advertising spending of the corporate sector in the U.S., which
is sensitive to economic conditions. Thus the sluggish growth of
the U.S. economy remains a major concern for Scripps.
Our proven model does not conclusively show that Scripps
Network is likely to beat the Zacks Consensus Estimate this
quarter. That is because a stock needs to have both a positive
Expected Surprise Prediction (ESP) (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1 (Strong Buy) or at least Zacks Rank #2
(Buy) or Zacks Rank #3 (Hold) for this to happen. Unfortunately
this is not the case here as elaborated below.
This is because the Most Accurate estimate stands at 91 cents
similar to the Zacks Consensus Estimate. This leads to a ESP of
0.00% for Scripps.
Zacks Rank #4 (Sell):
Scripps's Zacks Rank #4, decreases the predictive power of
We caution investors against the stock going into the earnings
announcement, as a Zacks earnings ESP of 0.00% combined with
Zacks Rank# 4 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 this quarter: follow the example mentioned below, no
need give the earnings release date.
AMC Networks Inc.
) has Earnings ESP of +9.52% and carries a Zacks Rank #2
Comcast Corporation (
has Earnings ESP of +1.89% and carries a Zacks Rank #3
News Corp Inc. (
has Earnings ESP of +4.76% and carries a Zacks Rank #3
AMC NETWORKS- A (AMCX): Free Stock Analysis
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SCRIPPS NETWRKS (SNI): Free Stock Analysis
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