Will DirecTV Miss in 4Q? - Analyst Blog
February 11 2013 - 4:30AM
Zacks
DirecTV (DTV) is
set to release its fourth-quarter 2012 results before the market
opens on Thursday, Feb 14, 2013.
In the preceding quarter, DirecTV
delivered a negative earnings surprise of 2.17%. Out of the last
four quarters, the company twice reported negative earnings
surprises. Let’s see how things are shaping up prior to the
announcement.
Factors to Consider This Quarter
DirecTV is well positioned for
long-term growth based on huge subscriber growth in Latin America,
increased ARPU in the U.S. new product launch and settlement of fee
related issues with Viacom.
However, sluggish economic growth
and competitive threats to the pay-TV industry may act as headwinds
for the company moving ahead.
Over the last 7 days, the Zacks Consensus Estimate for the fourth
quarter has remained flat at $1.15 per share.
Earnings Whispers
Our proven model does not conclusively show that DirecTV is likely
to beat the Zacks Consensus Estimate in the fourth quarter. That is
because a stock needs to have both a positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method) and a Zacks Rank #1 (Strong
Buy) or at least Zacks Rank #2 (Buy) or Zacks Rank #3 (Hold) for
this to happen. Unfortunately this is not the case here as
elaborated below.
Negative Zacks ESP: This is because the Most
Accurate estimate stands at $1.13 while the Zacks Consensus is
higher at $1.15. This results in a difference of -1.74%.
Zacks Rank #3 (Hold): DirecTV’s Zacks Rank #3
(Hold), however, increases the predictive power of ESP. That said
we also need to have a positive ESP to be confident of an earnings
surprise call.
Other Stocks to Consider
Here are some other companies you may want to consider on the basis
of our model, which shows they have the right combination of
elements to post an earnings beat this quarter:
Comcast Corporation
(CMCSA) has earnings ESP of
+1.89% and Zacks Rank #3 (Hold). It is scheduled to report its
fourth quarter results on Feb 13.
Cablevision Systems Corporation (CVC) is scheduled
to release its fourth quarter results on Feb 12. It has earnings
ESP of +10.00% and Zacks Rank #3 (Hold).
Shaw Communications, Inc. (SJR)
has earnings ESP of + 2.70% and Zacks Rank #3 (Hold).
COMCAST CORP A (CMCSA): Free Stock Analysis Report
CABLEVISION SYS (CVC): Free Stock Analysis Report
DIRECTV (DTV): Free Stock Analysis Report
SHAW COMMS-CL B (SJR): Free Stock Analysis Report
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