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Will Seoul Entertainment's (CSSE) Chicken Soup Report Negative Q2 Earnings? What You Need to Know

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W.All Street expects revenue growth to boost year-over-year earnings when Chicken Soup for the Soul Entertainment (CSSE) reports results for the quarter ended June 2022. Given the earnings landscape, a powerful factor that could affect stock prices in the short term is how actual results compare to these estimates.

If those key numbers are better than expected, the earnings report could help the stock price rise. Conversely, if you miss it, the stock price may fall.

While management’s discussion of business conditions on earnings calls largely determines the sustainability of near-term price movements and future earnings projections, it is valuable to have handicap insight into the odds of a positive EPS surprise. there is.

Sachs’ Consensus Estimation

The company is expected to post a quarterly loss of $0.74 per share in its next report, representing a +6.3% year-over-year change.

Revenue is expected to be $29.5 million, up 33.2% from the year-ago quarter.

Estimated Modified Trend

Consensus EPS estimates for the quarter were revised higher by 14.81% to current levels over the past 30 days. This essentially reflects how the covering analysts collectively reassessed their original estimates for this period.

Investors should keep in mind that the direction of revisions to estimates by each analyst covered may not necessarily be reflected in overall changes.

Earnings whisper

By revising forecasts before a company announces its financial results, it becomes a clue to know the economy during the period when financial results are announced. This insight is at the core of our proprietary surprise prediction model, Zacks Earnings ESP (Expected Surprise Prediction).

Zacks Earnings ESP compares the most accurate estimate to the quarterly Zacks Consensus estimate. The Most Accurate Estimate is the latest version of the Zacks Consensus EPS Estimate. The idea here is that analysts who revise their estimates just before the earnings release have the most up-to-date information. This may be more accurate than previously predicted by analysts and others contributing to the consensus.

Therefore, positive or negative earnings ESP readings theoretically indicate a high probability of real earnings from the consensus estimate. However, the predictive power of the model is significant only for positive ESP measures.

A positive earnings ESP is a strong predictor of earnings beats, especially when combined with Zacks ranks 1 (strong buy), 2 (buy), or 3 (hold). Our research shows that this combination of stocks creates a positive surprise almost 70% of the time, and a solid Zacks rank actually increases the predictive power of the Earnings ESP.

Note that a negative Earnings ESP number does not indicate a loss of revenue. Our research shows that stocks with negative Earnings ESP numbers or Zacks Ranks of 4 (sell) or 5 (strong sell) do not, no matter how confident you are, will increase earnings. It has been shown to be difficult to predict.

How was Seoul Entertainment’s Chicken Soup figure formed?

For Seoul Entertainment’s chicken soup, the most accurate estimate is lower than the Zacks consensus estimate, suggesting analysts have been bearish on the company’s earnings outlook lately. This resulted in a revenue ESP of -14.29%.

On the other hand, the stock is currently ranked 3rd in the Zacks rank.

Therefore, it is difficult to ultimately predict that Soul Entertainment, Inc.’s Chicken Soup will exceed the consensus EPS estimate for this combination.

Does the earnings surprise history hold any clues?

Analysts often consider how well they have been able to match past consensus estimates when calculating estimates of a company’s future earnings. Therefore, it’s worth looking at the history of surprises to gauge their impact on future numbers.

In its last reported quarter, Seoul Entertainment’s Chicken Soup was expected to post a loss of $0.64 per share, but actually lost $0.92, a surprise of -43.75%.

The company has failed to beat the consensus EPS forecast in any of the last four quarters.

Conclusion

Increases or decreases in earnings may not be the only reason a stock price rises or falls. Many stocks end up falling despite their strong performance due to other factors that disappoint investors. Similarly, unexpected catalysts have seen many stocks rise despite failing to generate earnings.

That said, betting on stocks that are expected to outperform earnings expectations increases your odds of success. This is why it’s worth checking out the company’s Earnings ESP and Zacks Rank ahead of each quarterly release. Take advantage of the Earnings ESP filter to find the best stocks to buy or sell before they’re reported. .

Soul Entertainment, Inc.’s Chicken Soup However, investors should also pay attention to other factors to bet on this stock or stay away from it before the earnings announcement.

Expected results for industry players

Another Zacks Broadcast Radio and Television industry stock, Audacy (AUD), is expected to post earnings per share of $0.07 for the quarter ended June 2022. This estimate represents a +600% change year over year. Revenue for the quarter is expected to be $324.1 million, up 6.5% from the year-ago quarter.

Over the past 30 days, Audacy’s consensus EPS estimate has been revised by 57.1% to its current level. Nonetheless, the company’s current earnings ESP is 0.00%, reflecting the most accurate estimate of the equivalent.

Combined with Zacks rank (sales) in 4th place, this earnings ESP makes it difficult to ultimately predict that Audacy will outperform the consensus EPS estimate. In the last four quarters, we’ve beaten EPS estimates only once.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Sachs Names ‘Best Single-to-Double Pick’

Out of thousands of stocks, each of our five Zacks experts picked their favorites to surge +100% or more in the coming months. Out of these five, research director Heraz Mian chose her one with the most explosive advantages.

A little-known chemical company, up 65% from last year, but still cheap. With relentless demand, his skyrocketing earnings forecast for 2022, and a $1.5 billion stock buyback, retail investors are ready to jump in.

The company rivals other recent Zacks stock doublings as Boston Beer Company surges +143.0% in just over nine months and NVIDIA surges +175.9% in a year. or may exceed it.

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The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.