Will Time Warner Cable Beat Earnings?
Time Warner Cable Inc.
) - the second-largest cable MSO in the U.S. - is set to release
its first-quarter 2013 results before the opening bell on Apr 25,
In the last quarter, the company delivered a 1.95% earnings
surprise. Let's see how things are shaping up for this
Factors to be Considered this Quarter
Continuous deployment of the DOCSIS 3.0 technology across its
footprints coupled with rate hikes and launch of popular sports
channels in the U.S. market will drive Time Warner Cable's
top-line growth, while moving ahead. Moreover, signing deals with
different sports majors and launching different devices will
further act as tailwinds for the company.
On the downside, persistent loss of video subscribers remains
the primary cause of concern for Time Warner Cable as customers
are opting for cheaper video streaming service providers like
Netflix, Hulu.Com and YouTube.
Our proven model does not conclusively show that Time Warner
Cable is likely to beat the Zacks Consensus Estimate this
quarter. This is because a stock needs to have both a positive
Expected Surprise Prediction (ESP) (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for
this to happen. Unfortunately, this is not the case here as
This is because the Most Accurate estimate is $1.34, below the
Zacks Consensus Estimate of $1.37. This leads to an ESP of -2.19%
for Time Warner Cable.
Zacks Rank #3 (Hold):
Time Warner Cable's Zacks Rank #3, decreases the predictive power
We caution investors against the stock going into the earnings
announcement, as a Zacks earnings ESP of -2.19% combined with a
Zacks Rank #3 lowers the possibility of an earnings surprise.
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:
COMCAST CORP A (CMCSA): Free Stock Analysis
SPRINT NEXTEL (S): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
TIME WARNER CAB (TWC): Free Stock Analysis
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) has an Earnings ESP of +1.56% and carries a Zacks Rank #2
) has an Earnings ESP of +4.08% and carries a Zacks Rank #3
) has an Earnings ESP of +20.00% and carries a Zacks Rank #3