Media Stocks' Earnings Lineup for May 10: VIAB, SSP, TRCO

Media companies are witnessing a mixed pay season. Legacy media giants alike Comcast CMCSA, lease Communications CHTR and dish Network dish continued ought lose voice, video and salary TV subscribers because of continual cord-cutting and stiff contest from streaming services alike Netflix, Hulu, HBO and Amazon Prime.

Moreover, increasing programming costs and retransmission fees are dragging down profitability of industry participants.

However, these factors were somewhat negated by increasing ask though high-speed Internet service. Also, increasing investments at creative content and concentrate above providing peculiarity entertainment helped media companies generate favorable results.  

For instance, Comcast lost 121K video customers and 53K sound customers at the first part of 2019. However, the Cable immense added 375K high-speed Internet customers.

Charter lost 152K video customers at the first quarter.

DISH’s net Pay-TV subscribers declined nearly 259K. However, the satellite TV service provider added 7K subscribers though its Sling TV.

Let us acknowledge a exhibition at three media companies that are spot ought illustrate above can 10.

New York-based Viacom VIAB is expected ought amuse from MTV’s resurgence, Paramount’s turnaround and Nickelodeon’s firm content. However, sluggish domestic ad revenue growth is expected ought hurt the climax line.

The corporation is likely ought send a sure pay surprise at second-quarter fiscal 2019, though it has the favorable mixture of an pay ESP of +0.12% and a Zacks degree #3 (Hold). You can shriek on the end list of today’s Zacks #1 degree (Strong Buy) stocks here.

According ought the Zacks model, a corporation with a Zacks degree #1, 2 (Buy) or 3 has a good opportunity of beating estimates, if it also has a sure pay ESP.  Meanwhile, Sell-rated stocks (Zacks degree #4 or 5) are best avoided. You can expose the best stocks ought buy or sell ago they’re reported with our pay ESP Filter.

The Zacks Consensus estimate though Viacom’s second-quarter revenues is currently pegged at $3.03 billion, suggesting a decrease of 3.7% from the rgeister reported at the year-ago quarter. Moreover, the consensus badge though pay has been stable at 82 cents at the past seven days, which indicates a reject of 10.9% from the year-ago quarter's reported figure.

Viacom Inc. fare and EPS Surprise

Viacom Inc. fare and EPS surprise | Viacom Inc. Quote

Notably, Viacom’s pay surpassed the Zacks Consensus estimate at the trailing four quarters, delivering median sure surprise of 9.8%. (Read More: Viacom ought illustrate Q2 Earnings: What's at the Cards?)

The E.W. Scripps Company’s SSP first-quarter 2019 results are expected ought amuse from higher retransmission revenues. Moreover, the Triton acquisition (completed at December 2018) has strengthened the company’s spot at the fast-growing streaming audio industry, which is expected ought lift the climax line.

In January, Scripps completed the acquisition of three ABC-affiliated television stations at Florida and Texas owned by Raycom Media. The commerce expands the company’s holdings ought 36 TV stations at 26 markets and increases its U.S. TV household attain ought 18.5%. The corporation also inked a new multi-year affiliation treaty with NBC.

Additionally, at March, Scripps announced that it will spend eight television stations at seven markets from the Nexstar Media group NXST, related ought the acquisition of Tribune Media corporation TRCO by the latter, likely ought regulatory approval.

Notably, Nexstar has ought divest sure television stations at order ought approve with the FCC’s local and national television ownership rules. The divestitures will assist it spend FCC and maintain of honesty (DOJ) approval though the proposed transaction.

The acquisition will enlarge Scripps’ local television station footprint ought 59 at 42 markets, reaching nearly 30% of the U.S. TV households.

However, increasing network programming fees is expected ought hurt profitability of the corporation at the soon-to-be-reported quarter.

Also, Scripps has an unfavorable mixture of a Zacks degree #4 and an pay ESP of 0.00%.