Will Twenty-First Century Fox (FOXA) Miss Earnings Estimates? - Analyst Blog

Media conglomerate Twenty-First Century Fox, Inc. ( FOXA ) is expected to post its third-quarter fiscal 2014 results after the closing bell on May 7, 2014. In the previous quarter, the company delivered a negative earnings surprise of 2.94%. Let's see how things are shaping up for this announcement.

Factors Influencing This Quarter

We remain impressed by the company's efforts to expand in the lucrative sports market and digital services arena. However, management's cautious commentary regarding Filmed Entertainment and Television segments restrict us to some extent. Also, lower prime-time ratings of X-Factor and American idol are expected to weigh on advertising revenues in the Television segment. Management also expects currency fluctuations to negatively impact cable revenues.

Earnings Whispers

Our proven model does not conclusively show that Twenty-First Century Fox is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP (Expected Surprise Prediction) 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 : Twenty-First Century Fox currently has an Earnings ESP of 0.00%. This is because the Most Accurate estimate is in line with the Zacks Consensus Estimate of 35 cents a share.

Zacks Rank #3 (Hold) : Twenty-First Century Fox's Zacks Rank #3 when combined with a 0.00% ESP makes surprise prediction difficult. 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.

Other Stocks to Consider

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

Rite Aid Corporation ( RAD ), Earnings ESP of +14.29% and a Zacks Rank #1 (Strong Buy).

Foot Locker, Inc. ( FL ), Earnings ESP of +1.91% and a Zacks Rank #3.

Big Lots Inc. ( BIG ), Earnings ESP of +2.27% and a Zacks Rank #3.

BIG LOTS INC (BIG): Free Stock Analysis Report

FOOT LOCKER INC (FL): Free Stock Analysis Report

TWENTY-FST CF-A (FOXA): Free Stock Analysis Report

RITE AID CORP (RAD): 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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