Grupo Televisa SAB (ADR) (TV)’s Shares Plunge 6.18% After Missing Earnings’ Expectations

The shares of Grupo Televisa SAB (ADR) (NYSE:TV) are down 6.18%, as the media company has once again fallen short of the market’s expectations. The entertainment company has reported net sales of $1.33 billion for the second quarter of 2015 with net income of $82 million. The Mexican firm announced 8.5% year-over-year growth in its net sales, whereas its net income declined by 40% during the second quarter. One of the primary reasons for the poor quarterly results was the decline of 16.4% in the advertising revenue of Grupo Televisa.  It is important to consider that the media company has fallen short of the market’s earnings expectations in each of the last four quarters. The shares of Grupo Televisa SAB (ADR) (NYSE:TV) are up by 15.92% year-to-date nonetheless, indicating a substantial optimism despite continual underperformance.

It appears the smart money wasn’t as convinced as other investors in the prospects of the company, as they were somewhat bearish on the stock of the entertainment company during the first quarter of the year. At the end of the first quarter, 25 hedge fund managers held $2.24 billion of the company’s shares, down from $2.30 billion in shares that 27 investors we track held at the end of 2014. Nonetheless, it appears the market optimism outshone hedge funds’ apathy, as shares soared in the second quarter despite another earnings miss being announced during that period.

We don’t just track the latest moves and sentiment among hedge funds. We are, in fact, more interested in their 13F filings, which we use to determine the top 15 small-cap stocks held by the funds we track. We gather and share this information based on 16 years of research, with backtests for the period between 1999 and 2012 and forward testing for the last 2.5 years. The results of our analysis show that these 15 most popular small-cap picks have a great potential to outperform the market, beating the S&P 500 Total Return Index by nearly one percentage point per month in backtests. Moreover, since the beginning of forward testing in August 2012, the strategy worked brilliantly, outperforming the market every year and returning 135%, which is more than 80 percentage points higher than the returns of the S&P 500 ETF (SPY) (see more details).

The insiders at Grupo Televisa SAB (ADR) (NYSE:TV) have remained inactive for the past six months with no insider transactions. Insider activity is a powerful indicator of the latest sentiment among the top executives of a company.

With all of this in mind, let’s take a peek at the key action regarding Grupo Televisa SAB (ADR) (NYSE:TV).