Media Stocks' Nov 4 Earnings Roster: VIAC, NWSA & More
Here we take a sneak peek at five media stocks -- ViacomCBS (VIAC), News Corp (NWSA), Cable One (CABO), World Wrestling (WWE) and TEGNA (TGNA) -- slated to report their...
Media companies’ third-quarter 2021 earnings are expected to have benefited from robust demand for online video content. An improved ad spending environment is expected to have benefited media companies this earnings season.
Netflix NFLX had a terrific third-quarter 2021. The streaming giant added 4.38 million paid subscribers globally in third-quarter 2021 against the addition of 2.2 million in the year-ago quarter and its guidance of 3.5 million paid subscribers.
Soaring demand for broadband service benefited Comcast CMCSA and Charter Communications. Comcast added 300K broadband customers to its profile in the third quarter while Charter gained 243K resident Internet users.
Moreover, Comcast’s advertising revenues increased 4.6% year over year to $705 million.
Meanwhile, legacy media giants like Comcast continue to lose voice, video and Pay TV subscribers due to persistent cord-cutting and stiff competition from streaming services like Netflix, Hulu, HBO, Disney+, Apple TV+ and Amazon Prime.
Sneak Peek Into a Few Upcoming Releases
Investors interested in the media sector are eagerly awaiting earnings releases from industry players like ViacomCBS VIAC, News Corporation NWSA, Cable One CABO, World Wrestling WWE and TEGNA TGNA, which are scheduled to report on Nov 4.
Let’s see how things shaped up for these companies prior to the announcement.
ViacomCBS’ third-quarter 2021 performance is expected to have benefited from its solid cable network portfolio. The growing traction of Showtime, BET, Comedy Central and Nickelodeon is expected to have boosted top-line growth. (Read more: ViacomCBS to Report Q3 Earnings: What's in the Cards?)
However, ViacomCBS is not expected to beat earnings this quarter as it has the unfavorable combination of a Zacks Rank #3 (Hold) and an Earnings ESP of -1.87%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ViacomCBS’s third-quarter earnings has remained at 76 cents per share in the past 30 days.
Strong subscription revenue growth is expected to have benefited News Corp’s first-quarter fiscal 2022 performance. A rise in paid digital subscriptions is expected to have driven top-line growth. The bottom line is expected to reflect benefits from management’s cost-saving initiatives.
However, News Corp also has an unfavorable combination of a Zacks Rank #3 and an Earnings ESP of 0.00% that dims the chances of a beat.
The Zacks Consensus Estimate for News Corp’s third-quarter earnings is pegged at 13 cents per share, unchanged over the past 30 days.
News Corporation Price and EPS Surprise
Meanwhile, Cable One’s third-quarter 2021 performance is expected to have benefited from continued strong growth in the residential HSD customer base. Residential HSD demand for higher tier product offerings is expected to have aided top-line growth in the to-be-reported quarter.
However, the company has an Earnings ESP of 0.00% and a Zacks Rank #4 that decreases chances of a beat.
Notably, the consensus mark for Cable One’s third-quarter earnings has been steady at $12.60 per share over the past 30 days.
World Wrestling has an Earnings ESP of 0.00% and a Zacks Rank #3 that reduces chances of a beat in the third quarter of 2021.
However, the company is expected to have gained from the return of live events as pandemic-led restrictions ease. The company continues to realize better-than-expected television production efficiencies and higher demand for live events. However, increased television and event-related production expenses are expected to have dented profitability in the to-be-reported quarter.
The consensus mark for third-quarter earnings has been steady at 34 cents per share over the past 30 days.
World Wrestling Entertainment, Inc. Price and EPS Surprise
TEGNA’s third-quarter 2021 results are expected to reflect benefits from accretive acquisitions, continued spike in subscription revenues and resurgence in advertising revenues. Increasing streaming consumption is expected to have driven demand for Premion, TEGNA’s OTT advertising solution.
However, the company has an Earnings ESP of 0.00% and a Zacks Rank #3 that lowers possibilities of a beat.
The Zacks Consensus Estimate for TEGNA’s third-quarter earnings is pegged at 49 cents per share, unchanged over the past 30 days.
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Comcast Corporation (CMCSA): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
World Wrestling Entertainment, Inc. (WWE): Free Stock Analysis Report
News Corporation (NWSA): Free Stock Analysis Report
TEGNA Inc. (TGNA): Free Stock Analysis Report
Cable One, Inc. (CABO): Free Stock Analysis Report
ViacomCBS Inc. (VIAC): Free Stock Analysis Report
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