), a media and entertainment company, to beat expectations when
it reports first-quarter fiscal 2014 results on Apr 30, 2014. In
the last quarter, it posted a positive surprise of 1.74%.
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
of +1.14%. This is because the Most Accurate estimate stands at
89 cents, while the Zacks Consensus Estimate is pegged at 88
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
+1.14% ESP makes us confident regarding a positive earnings beat
on Apr 30.
What is Driving the Better-than-Expected Earnings?
Time Warner's initiatives such as foray into new markets,
divestment activities and digital endeavors augur well for its
operating performance. Moreover, the company's investments in
programming, production and marketing, coupled with its focus on
operating and capital efficiencies bode well. Also, the company
has been expanding its digital presence to facilitate consumers
to enjoy content on more platforms and devices.
The company in the last 4 quarters has outperformed the Zacks
Consensus Estimate by an average of 8.8%.
Stocks that Warrant a Look
Here are some other companies you may want to consider as our
model shows these have the right combination of elements:
) has an Earnings ESP of +2.70% and a Zacks Rank #1 (Strong
Wynn Resorts Ltd.
) has an Earnings ESP of +1.90% and a Zacks Rank #2 (Buy).
General Dynamics Corp.
) has an Earnings ESP of +1.14% and a Zacks Rank #3 (Hold).
GENL DYNAMICS (GD): Free Stock Analysis
TIME WARNER INC (TWX): Free Stock Analysis
UNIT CORP (UNT): Free Stock Analysis Report
WYNN RESRTS LTD (WYNN): Free Stock Analysis
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