It has been about a month since the fiscal Q4 2018 earnings report for Viacom was released. Since then, its shares have lost about 10.2% of their value, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Viacom due for a breakout? Zacks Equity Research seeks the answer to this question.
Viacom reported fiscal Q4 2018 adjusted earnings of 99 cents per share. This beat the Zacks Consensus Estimate by 4 cents and increased 29% year over year.
Revenues of $3.49 billion beat the Zacks Consensus Estimate of $3.34 billion and increased 5% year over year.
Adjusted operating income surged 16% from the year-ago quarter to $670 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates, Zacks warns. The consensus estimate has shifted downward by 9.61% due to these changes.
Yet, Viacom has a “nice” Growth Score of B, though Zacks believes it is “lagging a bit on the Momentum Score front with a C.”
However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
What’s the conclusion, then, for investors?
“Overall, the stock has an aggregate VGM Score of A,” it says. “If you aren’t focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift.”
Notably, Viacom has a Zacks Rank #3 (Hold). It expects an in-line return from the stock in the next few months.
Viacom has had a bumpy year to date. With Monday’s close at $28.08, it is trending toward a fresh low. This was seen May 28, when Viacom’s Class B shares dropped to $26.71. Viacom’s peak is $34.09, seen in late February.
