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Will Shaw Communications (SJR) Miss Earnings in Q2? - Analyst Blog

Canadian cable multiple-system operator, Shaw Communications Inc.SJR is scheduled to report second-quarter 2015 results before the opening bell on Apr 14, 2015.

In the last quarter, the company lagged the Zacks Consensus Estimate by 4.9%. Let's see how things are shaping up for this announcement.

Factors at Play

Shaw Communications' recent acquisition of Viawest will likely boost its operations in the North American data center. The takeover of this CO-based data-center provider will help the company expand its data services and cloud capabilities business. However, stiff competition is resulting in persistent loss of video cable and video satellite customers. Also, in the previous quarter, the company lost several digital phone line customers.

Earnings Whispers

Our proven model does not conclusively show that Shaw Communications is likely to beat the Zacks Consensus Estimate 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. Unfortunately, this is not the case here as elaborated below.

Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate are poised at 32 cents. Hence, the ESP is 0.00%.

Zacks Rank: Shaw Communications carries a Zacks Rank #4 (Sell).

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

Stocks to Consider

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

Time Warner Cable Inc. TWC with an Earnings ESP of +1.06% and a Zacks Rank #3 (Hold).

TiVo Inc. TIVO with an Earnings ESP of +14.3% and a Zacks Rank #3.

Twenty-First Century Fox, Inc. FOXA with an Earnings ESP of +5.1% and a Zacks Rank #3.

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SHAW COMMS-CL B (SJR): Free Stock Analysis Report

TIVO INC (TIVO): Free Stock Analysis Report

TIME WARNER CAB (TWC): Free Stock Analysis Report

TWENTY-FST CF-A (FOXA): 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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