) - the largest cable MSO in the U.S. - is set to release its
first-quarter 2013 results before the opening bell on May 1,
Why a Likely Positive Surprise?
Our proven model shows that Comcast is likely to beat earnings
because it has the right combination of two key ingredients.
Positive Zacks ESP
: Expected Surprise Prediction or ESP (Read:
Zacks Earnings ESP: A Better Method
), which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, is +4.08%. This is a
meaningful and leading indicator of a likely positive earnings
Zacks #3 Rank (Hold)
: Comcast currently has a Zacks Rank #3. Note that the stocks
with Zacks Rank #1 (Strong Buy), 2 (Buy) and 3 (Hold) have a
significantly higher chance of beating the earnings.
The combination of Comcast's Zacks Rank #3 (Hold) and +4.08%
ESP makes us confident of a positive earnings beat on May 1,
What is Driving the Better-Than-Expected
Comcast's Cable business continued to beat market expectations
and the NBC Universal division made a solid turnaround. In spite
of challenges, the struggling video operation continued its
positive momentum. Comcast has also completed its major technical
innovations, such as DOCSIS 3.0, all digital networks and a
multi-platform content delivery network.
Moreover, several newly-launched services, such as Xfinity
Home, Wi-Fi, X1 and high-speed Metro Ethernet will act as
long-term growth catalysts for the company.
On the downside, persistent loss of video subscribers affects
Comcast as customers are opting for cheaper video streaming
service providers like Netflix, Hulu.Com and YouTube.
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.
American Tower Corporation
) has an Earnings ESP of +6.25% and carries a Zacks Rank #3
Research In Motion Limited
) has an Earnings ESP of +100.00% and carries a Zacks Rank #2
DISH Network Corp.
) has an Earnings ESP of +1.89% and carries a Zacks Rank #3
AMER TOWER CORP (AMT): Free Stock Analysis
RESEARCH IN MOT (BBRY): Free Stock Analysis
COMCAST CORP A (CMCSA): Free Stock Analysis
DISH NETWORK CP (DISH): Free Stock Analysis
To read this article on Zacks.com click here.