Is Tribune Poised To Report Strong Q3 Growth?


Tribune Media, like many radio and TV companies, will be releasing its Q3 earnings report next week. Wall Street expects earnings growth. Is that what investors can expect?

That’s a question Zacks Equity Research seeks to find an easy answer.

Wall Street expects a year-over-year increase in earnings on higher revenues. “While this widely-known consensus outlook is important in gauging the company’s earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.”

The earnings report, which is expected to be released on Friday, Nov. 9, might help the stock move higher if these key numbers are better than expectations, Zacks says. On the other hand, if they miss, the stock may move lower.

“While management’s discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it’s worth having a handicapping insight into the odds of a positive EPS surprise,” Zacks says.

This operator of the WGN America network and local TV stations is expected to post quarterly earnings of $0.55 per share in Q3. This represents a year-over-year change of +77.4%.

Revenues are expected to be $488.77 million, up 8.5% from the year-ago quarter.

Estimate Revisions Trend

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period, Zacks says.

“Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change,” Zacks warns.

It then looked at various formulas to try to find an answer to the question presented: Is Tribune poised to present a rosy Q3 report?

Zacks crystal ball was a bit fuzzy, but concluded, “Tribune Media doesn’t appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.”