Markets
CBS

Will CBS Corp. (CBS) Q1 Earnings Disappoint Investors? - Analyst Blog

An image of a person pointing to part of a graph
Credit: Shutterstock photo

CBS CorporationCBS is set to report its first-quarter 2015 results on May 7. Last quarter, the company posted in-line earnings. Let us see how things are developing for this announcement.

Factors to Consider This Quarter

Increased programming costs along with a strengthening U.S. dollar are likely to have an adverse impact on the company's results.

Earnings Whispers

Our proven model does not conclusively project CBS Corp. as likely to beat earnings 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. This is not the case here as you will see below.

Zacks ESP: CBS Corp. currently has an Earnings ESP of -1.33%. This is because the Most Accurate estimate stands at 74 cents per share, whereas the Zacks Consensus Estimate is 75 cents.

Zacks Rank: CBS Corp.'s Zacks Rank #3 (Hold) increases the predictive power of ESP. However, we need to have a positive ESP to be confident of an earnings beat.

We caution against stocks with Zacks Rank #4 and 5 (Sell-rated stocks) going into an earnings announcement, especially when the company is witnessing negative estimate revisions.

Stocks to Consider

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

Jack in the Box Inc. JACK has an Earnings ESP of +1.52% and a Zacks Rank #3.

Kate Spade & Company KATE has an Earnings ESP of +150.0% and a Zacks Rank #3.

Treehouse Foods, Inc. THS has an Earnings ESP of +1.72% and a Zacks Rank #3.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CBS CORP (CBS): Free Stock Analysis Report

JACK IN THE BOX (JACK): Free Stock Analysis Report

TREEHOUSE FOODS (THS): Free Stock Analysis Report

KATE SPADE&CO (KATE): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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.

In This Story

CBS THS JACK

Other Topics

Earnings Stocks