Liberty Media Corporation (LSXMK) First Quarter Earnings and Revenue Beat Estimates

Liberty Media Corporation (LSXMK) exited with quarterly earnings of $0.82 per share, beating Zacks consensus estimate of $0.50 per share. That compares to a loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents a 64% earnings surprise. A quarter ago, this company was expected to post a profit of $0.50 per share when it actually produced a loss of $0.20, delivering a surprise of -140%.

In the past four quarters, the company has exceeded consensus EPS estimates three times.

Liberty Media Corporation, which belongs to the satellite and communications industry of Zacks, reported revenue of $2.19 billion for the quarter ended March 2022, beating Zacks’ consensus estimate of 2.61% . That compares to revenues of $2.06 billion a year ago. The company has exceeded consensus revenue estimates twice in the past four quarters.

The sustainability of the immediate stock price movement based on recently released numbers and future earnings forecasts will primarily depend on management’s comments on the earnings call.

Liberty Media Corporation shares have lost about 17.4% year-to-date compared to a -13% decline for the S&P 500.

What’s next for Liberty Media Corporation?

While Liberty Media Corporation has underperformed the market so far this year, the question on investors’ minds is: what’s next for the stock?

There is no easy answer to this key question, but a reliable measure that can help investors answer it is the company’s earnings outlook. This includes not only current consensus earnings expectations for the upcoming quarter(s), but also how those expectations have changed recently.

Empirical research shows a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Prior to this publication of the results, the trend of revisions of estimates for Liberty Media Corporation: unfavourable. While the magnitude and direction of estimate revisions may change following the release of the company’s earnings report, the current situation translates into a Zacks No. 5 ranking (strong sell) for the stock. Thus, stocks are expected to underperform the market in the near future. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how the estimates for the next few quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.88 on $2.23 billion in revenue for the upcoming quarter and $2.90 on $8.99 billion in revenue for the current fiscal year.

Investors should be aware that the outlook for the sector can also have a significant impact on stock performance. In terms of Zacks industry rankings, satellite and communications currently sit in the bottom 5% of over 250 Zacks industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.

Maxar Technologies (MAXR), another stock in the same sector, has not yet released its results for the quarter ended March 2022. The results are expected to be released on May 9.

This satellite company is expected to post a quarterly loss of $0.12 per share in its next report, representing a year-over-year change of +90.8%. The consensus EPS estimate for the quarter has been revised up 6.9% in the last 30 days from the current level.

Maxar Technologies revenue is expected to be $399.5 million, up 1.9% from the prior year quarter.

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