CBS Corp. Earnings: Powering Ahead

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S&P 500 (NYSE:SPY) component CBS Corporation (NYSE:CBS) reported net income above Wall Street’s expectations for the third quarter. CBS is a mass media company with operations in entertainment, cable networks, publishing, local broadcasting, and radio.

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CBS Corporation Earnings Cheat Sheet

Results: Net income for CBS Corporation rose to $391 million (60 cents per share) vs. $338 million (50 cents per share) in the same quarter a year earlier. This marks a rise of 15.7% from the year-earlier quarter.

Revenue: Rose 1.6% to $3.42 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: CBS Corporation reported adjusted net income of 65 cents per share. By that measure, the company beat the mean estimate of 61 cents per share. It fell short of the average revenue estimate of $3.78 billion.

Quoting Management: “CBS has continued its remarkable run with yet another record quarter,” said Sumner Redstone, Executive Chairman, CBS Corporation. “Our world-class content and multiplatform distribution strategy remain at the center of our success. I am very proud of all that Leslie and his team have accomplished, and I know we are in position for continued growth for many years to come.The transformation of CBS continues as reflected in these record third quarter results,” said Leslie Moonves, President and Chief Executive Officer, CBS Corporation. “We have taken a number of significant steps during the last several months to execute our strategy and grow the Company. These include three major retransmission consent agreements, an important reverse compensation deal, new international and domestic streaming contracts, and the sale of our two new hit dramas, Vegas and Elementary, into international syndication. As we continue to take actions like these, we are increasing our recurring revenue from nonadvertising sources and setting ourselves up for even more record results in the future. Going forward, we will continue to expand the ways we achieve value for our content, and we are confident we will hit our goal of a record 2012 and an even better 2013.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 8.1% and in the first quarter, the figure rose 79.7%.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 7 cents in the second quarter, by 10 cents in the first quarter, and by 4 cents in the fourth quarter of the last fiscal year.

After dropping in the quarter before, revenue increased last quarter. Revenue fell 3.1% to $3.48 billion in the second quarter from the year earlier.

Looking Forward: For the next quarter, analysts are growing pessimistic about the company’s expected results. The average estimate for the fourth quarter is 74 cents per share, dropping from 75 cents a month ago. For the fiscal year, the average estimate has moved down from $2.56 a share to $2.54 over the last sixty days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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