The E. W. Scripps Company
), a diversified media company, is slated to report its
second-quarter fiscal 2014 earnings on Aug 8, before the opening
bell. In the previous quarter, Scripps recorded a positive earnings
surprise of 92.3%. Let's see how things are shaping up for this
Factors Influencing this Quarter
In the previous quarter, Scripps' revenues improved on the back of
robust local advertising revenue along with an anticipated rise in
retransmission revenue. Also, the company's loss from operations
narrowed year over year. Going forward, the company is likely to
benefit from the recent merger of its broadcast operations and
newspapers with Journal Communications (JRN). This merger is
anticipated to drive Scripps' television margins, revenues and help
it maintain its solid financials. However, we prefer being on
sidelines as the company is witnessing rising costs allocated
towards supporting its digital initiatives.
Our proven model does not conclusively show that Scripps is likely
to beat earnings this quarter. This is because a stock needs to
have both a positive
(Expected Surprise Prediction) and a Zacks Rank #1, 2 or 3 for this
to happen. This is not the case here as you will see below:
: Earnings ESP, which represents the difference between the Most
Accurate estimate and the Zacks Consensus Estimate, is currently
pegged at -33.33%. This is because the Most Accurate estimate of 8
cents per share is below the Zacks Consensus Estimate of 12 cents.
: Scripps carries a 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
negative estimate revisions.
Other Stocks to Consider
Here are some other companies you may want to consider as our model
shows they have the right combination of elements to post an
GameStop Corp. (
), Earnings ESP of +26.32% and a Zacks Rank #3 (Hold).
Abercrombie & Fitch Co. (
), Earnings ESP of +20.00% and a Zacks Rank #3.
Macy's, Inc. (
), Earnings ESP of +1.16% and a Zacks Rank #3.
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