Thomson Reuters Corporation (TO:TRI) is slated to report second-quarter 2016 results on Jul 28. In the previous quarter, the company’s earnings surpassed the Zacks Consensus Estimate by an average of 9.1%.
Notably, in the trailing four quarters, the company surpassed the Zacks Consensus Estimate with a positive earnings surprise of 8.9%. However, it remains to be seen if Thomson Reuters will be able to keep its positive earnings surprise alive.
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 Thomson Reuters 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. Thomson Reuters has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 49 cents. The company carries a Zacks Rank #2 (Buy), which when combined with ESP of 0.00% makes a surprise prediction difficult.
Factors Influencing This Quarter
Management remains optimistic about the company’s future performance, given its constant endeavors to implement core strategies and progress toward achieving its financial goals. We believe that its cost-containment efforts, share buyback plan and impressive performance of the underlying subscription revenues (which account for most of the total revenue) bode well. On the other hand, adverse currency fluctuations may play a spoilsport in the quarter to be reported.
Thomson Reuters remains focused on its financial objectives. The company has been working tirelessly to achieve its earnings target for 2017. The company also intends to keep improving its, free cash flow per share as it did in 2015. Further, the company continues to boost its organic growth via strategic investments in its highest growth market.
Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
CBS Corp. (NYSE:CBS) has an Earnings ESP of +1.16% and a Zacks Rank #2 (Buy).
Time Warner Inc. (NYSE:TWX) has an Earnings ESP of +0.87% and a Zacks Rank #3 (Hold).
Expedia Inc. (NASDAQ:EXPE) has an Earnings ESP of +6.82% and a Zacks Rank #3.
THOMSON REUTERS (TRI): Free Stock Analysis Report
TIME WARNER INC (TWX): Free Stock Analysis Report
CBS CORP (CBS): Free Stock Analysis Report
EXPEDIA INC (EXPE): Free Stock Analysis Report
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