Carmike Cinemas Inc
) is set to release second-quarter 2014 results after the market
closes on Aug 4, 2014.
In the last quarter, the company delivered a 300.00% earnings
surprise with an average beat of negative 88.03% in the last four
quarters. Let's see how things are shaping up for this
Factors to be Considered this Quarter
Carmike Cinemas is poised for improved financial results mainly
buoyed by hit movie releases this summer.
However, volatility in the movie industry, increasing
maintenance costs and stiff competition from other theatrical and
low-cost video streaming companies will continue to hurt the
Carmike's profitability going forward.
Our proven model does not conclusively show that Carmike 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:
Negative Zacks ESP:
This is because the Most Accurate Estimate is pegged at 31 cents
while the Zacks Consensus Estimate is higher at 35 cents. This
leads to an ESP of -11.43% for Carmike.
Zacks Rank #4 (Sell):
We caution against stocks with Zacks Rank #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing a negative estimate revisions momentum.
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.
Dish Network Corp. (
) has an Earnings ESP of +15.39% and a Zacks Rank #3 (Hold).
Cablevision Systems Corporation (
) has an Earnings ESP of +33.33% and a Zacks Rank #3.
Digital Cinema Destinations Corp. (
) has an earnings ESP of +66.67% and a Zacks Rank #3.
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DIGITAL CINEMA (DCIN): Free Stock Analysis
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