News Corp. (NWSA) Q4 Earnings: Will The Stock Disappoint?

News Corporation (NASDAQ:NWSA) , the diversified media conglomerate, is slated to report fourth-quarter fiscal 2016 results on Aug 8. The question lingering in investors’ minds is, whether the company will be able to deliver a positive earnings surprise in the quarter to be reported. In the trailing four quarters, News Corporation missed the Zacks Consensus Estimate by an average of 9.2%. In the preceding three quarters, the company underperformed the Zacks Consensus Estimate. Let’s see how things are shaping up for this announcement.

Zacks Model Shows Unlikely Earnings Beat

Our proven model does not conclusively show that News Corporation is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. News Corporation has an Earnings ESP of -14.29% as the Most Accurate estimate is 12 cents, while the Zacks Consensus Estimate is pegged at 14 cents. News Corporation’s Zacks Rank #3 (Hold) increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.

Factors Influencing this Quarter

News Corporation is in a transitionary phase, looking to diversify its revenue streams through strategic acquisitions and operational enhancement. The company is expanding its digital offerings, along with greater emphasis on real estate businesses. However, foreign currency headwinds, soft advertising demand and lower revenues at its Book Publishing and Cable Network Programming divisions raise concerns. Total advertising revenue fell 10% during the third quarter of fiscal 2016. Advertising revenue declined across the company’s News and Information Services segment.

NEWS CORP NEW-A Price, Consensus and EPS Surprise

NEWS CORP NEW-A Price, Consensus and EPS Surprise | NEWS CORP NEW-A Quote

Stocks Poised to Beat Earnings Estimates

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

Time Warner Inc. (NYSE:TWX) has an Earnings ESP of +0.87% and a Zacks Rank #3.

Eros International Plc (NYSE:EROS) has an Earnings ESP of +7.14% and a Zacks Rank #3.

TiVo Inc. (NASDAQ:TIVO) has an Earnings ESP of +15.39% and a Zacks Rank #3.