Media giant Twenty-First Century Fox, Inc. (FOXA), is set to report its fourth-quarter fiscal 2014 results on Aug 6, 2014. Last quarter, it posted a positive surprise of 34.3%. Let's see how things are developing for this announcement.
Growth Factors This Quarter
Twenty-First Century Fox’s fourth-quarter earnings are likely to be impacted by the rising programming costs given the higher sports rights deals (MLB, NASCAR and Cricket World Cup). Moreover, currency fluctuations will continue to remain a drag.
Our proven model does not conclusively project Twenty-First Century Fox as likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and Zacks Rank #1 #2 or #3 for this to happen. This is not the case here as you will see below.
Zacks ESP: ESP for Twenty-First Century Fox is -2.56%. This is because the Most Accurate Estimate is pegged at 38 cents and the Zacks Consensus Estimate stands at 39 cents.
Zacks Rank: Twenty-First Century Fox Zacks Rank #4 (Sell) when combined with a negative ESP makes surprise prediction unlikely. We caution against stocks with a Zacks Rank #4 and #5 (Sell-rated stocks) going into an earnings announcement, especially when the company is witnessing negative estimate revisions.
Other Stocks to Consider
Here are some other companies you may want to consider as our model shows these to have the right combination of elements to post an earnings beat:
Avis Budget Group, Inc. (CAR) Earnings ESP stands at +3.18% and it carries a Zacks Rank #1 (Strong Buy).
Archer Daniels Midland Co. (ADM) with an Earnings ESP of +5.26% holds a Zacks Rank #2 (Buy).
Huntington Ingalls Industries, Inc. (HII) has an Earnings ESP of +2.20% and a Zacks Rank #2.