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What to Expect from Liberty Global's (LBTYA) Q4 Earnings?

Zacks Equity Research
Updated

Liberty Global plc LBTYA is expected to release its fourth-quarter 2015 earnings numbers on Feb 11, 2016.

In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by a remarkable 200%. However, the company has delivered negative earnings surprises in three of the prior four quarters, with a huge average miss of 623.34%. Let’s see how things are shaping up ahead of this announcement.

Factors Likely to Influence this Quarter

In Nov 2015, Liberty Global armed itself with ARRIS Touchstone TG2492 Gateway from ARRIS International plc ARRS to support its high-speed broadband Internet and streaming services. The flagship Touchstone TG2492 wireless gateway is touted to deliver the best-in-class Wi-Fi performance, faster speeds and improved connectivity for an expanding number of consumer devices. With consumers increasingly using streaming services for watching Internet TV through mobile devices, the ARRIS Touchstone gateway should provide Liberty Global a suitable platform to offer more innovative media and IPTV services in the future.

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Moreover, Liberty Global is rapidly expanding its global presence. The company recently reached an agreement to buy Caribbean cable operator Cable & Wireless Communications plc. We believe that its overseas diversification measures positions Liberty Global well for organic growth, going forward.

Earnings Whispers

Our proven model does not conclusively show that Liberty Media is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.

Zacks ESP: Liberty Global has an earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate is pegged at 3 cents.

Zacks Rank: Liberty Global has a Zacks Rank #3 which increases the predictive power of ESP. However, we need to have a positive ESP to be confident of an earnings surprise.

Stocks to Consider

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

Nokia Corporation NOK, with an earnings ESP of +23.08% and a Zacks Rank #3

Infinera Corporation INFN, with an earnings ESP of +7.14% and a Zacks Rank #3

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
INFINERA CORP (INFN): Free Stock Analysis Report
 
ARRIS INTL PLC (ARRS): Free Stock Analysis Report
 
NOKIA CP-ADR A (NOK): Free Stock Analysis Report
 
LIBERTY GLBL-A (LBTYA): Free Stock Analysis Report
 
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Zacks Investment Research