Will CBS Corp. (CBS) Q1 Earnings Disappoint Investors? - Analyst Blog
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.
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.