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Liberty Interactive (QVCA) Poised to Beat on Q1 Earnings

Liberty Interactive Corporation QVCA is scheduled to report first-quarter 2016 financial numbers on May 9, before the market opens.

Last quarter, the company delivered an earnings surprise of 29.17%. Let’s see how things are shaping up for this announcement.

Why a Likely Positive Surprise?

Our proven model shows that the company is likely to beat earnings because it has the right combination of two key ingredients.

Zacks ESP: LibertyInteractive has an Earnings ESP of +27.27%. This is because the Most Accurate estimate stands at 28 cents, while the Zacks Consensus Estimate is pegged lower at 22 cents. This is a meaningful and a leading indicator of a likely positive earnings surprise.

Zacks Rank: LibertyInteractive has a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 have a significantly higher chance of beating earnings estimates. Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Thus, the combination of Liberty Interactive’s Zacks Rank #3 and positive ESP makes us reasonably confident of an earnings beat this quarter.

What is Driving the Better-than-Expected Earnings?

Through gradual expansion in developed markets such as Japan, Germany, Italy and the UK, Liberty Interactive has gained steady traction on the international front. The company is also optimistic about its operations in China where recent data showed a sharp uptrend in online sales. We believe that the company’s widespread international presence, along with encouraging sales numbers, bodes well for its growth, going forward.

Recently, the company launched a popular apparel brand, C.Wonder, targeted at premium customers. The launch of the brand is expected to drive top-line growth at the company, going forward.

Other Stocks to Consider

Here are some other companies to consider as our model shows that they too have the right combination of elements to post an earnings beat this quarter.

Agilent Technologies, Inc. A has an Earnings ESP of +2.56% and a Zacks Rank #2.

ACI Worldwide, Inc. ACIW has an Earnings ESP of +12.5% and a Zacks Rank #3.

Asure Software, Inc. ASUR, with Earnings ESP of +200.00% and a Zacks Rank #3.

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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
 
ASURE SOFTWARE (ASUR): Free Stock Analysis Report
 
LIBERTY M INT-A (QVCA): Free Stock Analysis Report
 
ACI WORLDWIDE (ACIW): Free Stock Analysis Report
 
AGILENT TECH (A): Free Stock Analysis Report
 
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