The overall scenario this earnings season has been quite encouraging. As more companies post their quarterly numbers, we believe this might end up being the first quarter of positive earnings growth after five consecutive quarters of decline. With key players scheduled to report earnings this week, our latest Earnings Outlook now predicts earnings growth of 2.1% year over year on the back of 1.4% higher revenues. Moreover, we expect the trend to continue in the upcoming quarters.
With the initial fears of continued ‘earnings recession’ gradually dissipating, let us take a look at three movie stocks that are due to report their quarterly numbers on Nov 3.
MSG Networks Inc. (NYSE:MSGN) is engaged in production and content development which comprises sports and entertainment networks. This Zacks Rank #3 (Hold) company is expected to report its first-quarter fiscal 2016 financial numbers and has an Earnings ESP of 0.00%. This is because both Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.19. However, the combination of a Zacks Rank #3 and Earnings ESP of 0.00% doesn’t conclusively show an earnings beat for MSG Networks.
Lions Gate Entertainment Corp. (NYSE:LGF) is an entertainment company with a presence in motion picture production and distribution. This Zacks Rank #3 stock has an Earnings ESP of -4.17% as the Most Accurate estimate stands at 24 cents while the Zacks Consensus Estimate is pegged at 24 cents. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Although a Zacks Rank #3 increases the predictive power of ESP, we need a positive Earnings ESP to be confident of earnings beat.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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LIONS GATE ETMT (LGF): Free Stock Analysis Report
MSG NETWORKS (MSGN): Free Stock Analysis Report
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