Time Warner Inc.
), the diversified media conglomerate, to beat expectations when
it reports second-quarter 2013 results on Aug 7, 2013.
Why a Likely Positive Surprise?
Our proven model shows that Time Warner is likely to beat
earnings because it has the right combination of two key
Positive Zacks ESP:
Time Warner currently has an Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) of +1.33%. This is because the Most Accurate Estimate stands at
76 cents, while the Zacks Consensus Estimate is pegged at 75
Zacks Rank #3 (Hold):
Note that stocks with a Zacks Ranks of #1, #2 and #3 have a
significantly higher chance of beating earnings estimates. The
sell-rated stocks (Zacks Rank #4 and #5) should never be
considered going into an earnings announcement.
The combination of Time Warner's Zacks Rank #3 (Hold) and
+1.33% ESP makes us very confident regarding a positive earnings
beat on Aug 7.
What is Driving the Better-than-Expected
Time Warner's initiatives such as the foray into new markets,
divestment activities, and digital endeavors would augur well for
its future operating performances. Moreover, the company's
investments in programming, production and marketing, while
concentrating on operating and capital efficiencies also bode
well. The positive trend is seen in the trailing four-quarter
average surprise of 5.6%.
Stocks that Warrant a Look
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
The Gap, Inc.
), Earnings ESP of +1.70% and a Zacks Rank #2 (Buy).
Citi Trends, Inc.
), Earnings ESP of +2.33% and a Zacks Rank #2 (Buy).
New York & Company Inc.
), Earnings ESP of +33.33% and a Zacks Rank #3 (Hold).
CITI TRENDS INC (CTRN): Free Stock Analysis
GAP INC (GPS): Free Stock Analysis Report
NEW YORK & CO (NWY): Free Stock Analysis
TIME WARNER INC (TWX): Free Stock Analysis
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