ViacomCBS Inc. (NYSE: VIAC) has confirmed that it will release its fourth-quarter earnings report on Monday, February 14, 2022.
What to look for
Earnings: Stockearning’s Estimated EPS for the fiscal Q4 2021 is expected to be $0.37 per share, representing a YoY increase of 64.42%. In the same quarter a year ago, the company had earnings per share of $1.04. ViacomCBS reported earnings of $0.76 per share in Q3 2021. Historical EPS Performance shows that in the past 12 quarters, the company has topped EPS estimates 29 times (82%), matched thrice (8%), and missed thrice (8%).
Revenue: The company expects to report revenue of $7.47 billion, representing a YoY increase of 8.66%. In the third quarter, the company reported revenue of $6.61 billion, a 13% YoY increase. For the nine months ended June 30, the company posted revenue of $20.586 billion, a YoY increase of 12%.
Stock movement: VIAC shares have lost 10.3% since the company released its third-quarter earnings. Interestingly, VIAC shares have been DOWN 8 times out of the past 12 quarters. So, the historical price reaction suggests a 65% probability of the share price going DOWN once the company reports its fiscal Q4 2021 earnings. According to Stockearning’s algorithm, the predicted first-day move is 5%, while the predicted move on the seventh day is 7%.
What analysts are saying
Deutsche Bank analyst Bryan Kraft upgraded the stock from Hold to Buy, noting that the media conglomerate is attractive to investors because of its positive fundamental developments, enhanced disclosure, and optionality from sector consolidation. As a result, the analyst said that the company is his top media pick. Kraft also raised his price target to $43, driven by the firm's long-term streaming revenue prediction and time value of money appreciation.
KeyBanc analyst Bradon Nispel upgraded VIAC to Hold from Sell. The analyst noted that his data is gathering upon improving gross adds and churn momentum with direct-to-consumer subscriber upside expected to improve sentiment from depressed levels.
Needham analyst Laura Martin slashed her price target on the stock from $80 to $45 but maintained a Buy rating in the stock. She highlighted wider concerns for stocks under the AdTech and Streaming coverage that drove various compression in 2021 and 2022 to date. The concerns include chi shortages, tougher comps, supply chain constraints, omicron variant slowing digital ad growth, and the growing interest rates.
Macquarie analyst Tim Nollen slashed his price target on ViacomCBS from $40 to $32 but maintained a Hold rating in the stock, warning investors to be cautious about network media as the “streaming wars go globe.” In terms of 2022, he prefers ad agencies to media networks, claiming that the ad business is strong and that agency stocks do well during initial rate tightening cycles.
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