Thomson Reuters Corporation
), provider of information related to financial & risk, legal,
tax & accounting, and intellectual property & science, is
slated to report second-quarter 2014 results on Jul 30. In the last
quarter, it delivered a positive surprise of 17.95%. Let's see how
things are shaping up for this announcement.
Factors Influencing This Quarter
The macroeconomic headwinds in Europe and regulatory changes
remain concerns for the company that may adversely impact the top
line. Moreover, loss of market share in the financial sector due to
increasing competition from Bloomberg also remains a threat.
Management expects a mid-to-high single-digit decline across its
U.S. print revenue within the Legal segment.
Our proven model does not conclusively show that Thomson Reuters
is likely to beat earnings estimates this quarter. This is because
a stock needs to have both a positive
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 for Thomson Reuters is 0.00%. This is because both the
Most Accurate estimate and the Zacks Consensus Estimate stand at 47
Thomson Reuters has a Zacks Rank #4 (Sell) which lowers the
predictive power of ESP. We caution against stocks with a Zacks
Ranks #4 and 5 (Sell-rated stocks) going into the earnings
announcement, especially when the company is seeing negative
Stocks That Warrant a Look
Here are some companies you may want to consider as our model
shows that these have the right combination of elements:
Exponent Inc. (
) has an Earnings ESP of +1.43% and a Zacks Rank #3 (Hold).
Navigant Consulting Inc. (
) has an Earnings ESP of +4.00% and a Zacks Rank #3.
Time Warner Inc. (
) has an Earnings ESP of +1.19% and a Zacks Rank #3.
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