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CBS Corp. (CBS) Q4 Earnings: Will the Stock Disappoint?

CBS CorporationCBS is slated to report fourth-quarter 2016 results on Feb 15, after the closing bell. The big question lingering in the investor's mind now is, whether the company will be able keep its earnings streak alive or not.

In the previous, quarter the company reported earnings beat of 7.1%. Notably, the company has surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average earnings beat of 6.2%. Let's see how things are shaping up prior to this announcement.

Zacks Model Shows Unlikely Earnings Beat

Our proven model does not conclusively show that CBS 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 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. The Most Accurate estimate stands at $1.09, while the Zacks Consensus Estimate is pegged higher at $1.10. So the ensuing difference - the Earnings ESP - is of -0.91%. The company carries a Zacks Rank #3, which when combined with an ESP of -0.91%, makes an earnings surprise difficult. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

CBS Corporation Price, Consensus and EPS Surprise

CBS Corporation Price, Consensus and EPS Surprise | CBS Corporation Quote

Factors Influencing this Quarter

CBS had earlier stated that advertising is likely to improve further due to an increase in political spending. Additionally, the company highlighted that its non-advertising revenue is improving rapidly. The company anticipates crossing the $1 billion mark in revenues from retransmission consent and reverse compensation in 2016. The company's sustained focus on increasing subscription-based revenues should drive long-term growth. The company has an extensive library of premium content that it monetizes over multiple platforms.

However, the media industry is highly competitive and CBS faces intense competition from other broadcast radio and television stations, cable television networks and motion picture studios in the market in which it operates. This may weigh on the company's performance.

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:

Dollar Tree, Inc. DLTR has an Earnings ESP of +0.75% and carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.

Papa John's International, Inc. PZZA has an Earnings ESP of +4.55% and also carries a Zacks Rank #2.

Carrols Restaurant Group, Inc. TAST has an Earnings ESP of +16.67% and carries a Zacks Rank #2.

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CBS Corporation (CBS): Free Stock Analysis Report

Dollar Tree, Inc. (DLTR): Free Stock Analysis Report

Papa John's International, Inc. (PZZA): Free Stock Analysis Report

Carrols Restaurant Group, Inc. (TAST): 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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