) is set to release its fourth-quarter 2012 results before the
market opens on Thursday, Feb 14, 2013.
In the preceding quarter, DirecTV delivered a negative
earnings surprise of 2.17%. Out of the last four quarters, the
company twice reported negative earnings surprises. Let's see how
things are shaping up prior to the announcement.
Factors to Consider This Quarter
DirecTV is well positioned for long-term growth based on huge
subscriber growth in Latin America, increased ARPU in the U.S.
new product launch and settlement of fee related issues with
However, sluggish economic growth and competitive threats to
the pay-TV industry may act as headwinds for the company moving
Over the last 7 days, the Zacks Consensus Estimate for the fourth
quarter has remained flat at $1.15 per share.
Our proven model does not conclusively show that DirecTV is
likely to beat the Zacks Consensus Estimate in the fourth
quarter. That is because a stock needs to have both a positive
Earnings 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.
Negative Zacks ESP:
This is because the Most Accurate estimate stands at $1.13 while
the Zacks Consensus is higher at $1.15. This results in a
difference of -1.74%.
Zacks Rank #3 (Hold):
DirecTV's Zacks Rank #3 (Hold), however, increases the predictive
power of ESP. That said we also need to have a positive ESP to be
confident of an earnings surprise call.
Other Stocks to Consider
Here are some other companies you may want to consider on the
basis of our model, which shows they have the right combination
of elements to post an earnings beat this quarter:
has earnings ESP of +1.89% and Zacks Rank #3 (Hold). It is
scheduled to report its fourth quarter results on Feb 13.
Cablevision Systems Corporation
) is scheduled to release its fourth quarter results on Feb 12.
It has earnings ESP of +10.00% and Zacks Rank #3 (Hold).
Shaw Communications, Inc. (
has earnings ESP of + 2.70% and Zacks Rank #3 (Hold).
COMCAST CORP A (CMCSA): Free Stock Analysis
CABLEVISION SYS (CVC): Free Stock Analysis
DIRECTV (DTV): Free Stock Analysis Report
SHAW COMMS-CL B (SJR): Free Stock Analysis
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