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Can TEGNA (TGNA) Pull a Surprise This Earnings Season?

TEGNA Inc.TGNA , which is engaged in media and digital businesses in the U.S., is slated to report third-quarter 2015 results on Oct 20. In the last reported quarter, the company delivered a positive earnings surprise of 58.5%. Let's see how things are shaping up for this announcement.

Zacks Model Shows Unlikely Earnings Beat

Our proven model does not conclusively show that TEGNA is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. TEGNA has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at 36 cents. The company carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Factors Influencing this Quarter

Management had earlier projected that television revenues may decline in the low-to-mid single digits in third-quarter 2015 due to tough year-over-year comparisons, as the year-ago quarter had gained $40 million from political advertising. This may weigh upon the company's performance. In the preceding quarter, the bottom line declined 3% due to higher selling, general and administrative expenses, depreciation charges and interest expense. It remains to be seen what the third-quarter earnings release unveils.

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

The New York Times Company NYT has an Earnings ESP of +60.00% and a Zacks Rank #1 (Strong Buy).

Time Warner Inc. TWX has an Earnings ESP of +0.92% and a Zacks Rank #3 (Hold).

L Brands, Inc. LB has an Earnings ESP of +2.08% and a Zacks Rank #3.

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NY TIMES A (NYT): Free Stock Analysis Report

TIME WARNER INC (TWX): Free Stock Analysis Report

TEGNA INC (TGNA): Free Stock Analysis Report

L BRANDS INC (LB): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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