Can Cincinnati Bell's (CBB) Q1 Earnings Pull A Surprise?
Zacks Investment Research | May 03, 2016 07:15AM ET
Cincinnati Bell Inc. ( (NYSE:CBB) is slated to release first-quarter 2016 results on May 5, before the opening bell.
Last quarter, Cincinnati Bell’s earnings had met the Zacks Consensus Estimate. Meanwhile, the trailing four-quarter average earnings surprise stands at 66.67%.
Let’s see how things are shaping up for this announcement.
Factors Likely to Influence this Quarter
Introduction of MyTV through its Fioptics high-speed Internet service bodes well as providing smaller, tailored TV channel packages are likely to drive the company’s top line as well as check churn in the quarter. Moreover, creation of a new business division aimed at providing support services to various small and mid-sized Businesses (SMBs) should further boost the quarter’s performance.
On the flip side, continuous erosion in local access lines, heavy capital expenditure requirements, slower pace of ARPU growth along with legal hurdles are some of the factors that might hamper the quarter’s results. Moreover, intensifying competition in the company’s operational region can be a drag on its pricing power, thereby inducing pressure on its margins.
Earnings Whispers
Our proven model does not conclusively show that Cincinnati Bell is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive To read this article on Zacks.com click here.
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