CBS Earnings: Stock SPIKES on Third Straight Quarter of Rising Profit
S&P 500 (NYSE:SPY) component CBS Corporation (NYSE:CBS) reported net income above Wall Street’s expectations for the second 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 the media conglomerate rose to $427 million (65 cents per share) vs. $395 million (58 cents per share) in the same quarter a year earlier. This marks a rise of 8.1% from the year-earlier quarter.
Revenue: Fell 3.1% to $3.48 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: CBS Corporation beat the mean analyst estimate of 58 cents per share. It fell short of the average revenue estimate of $3.78 billion.
Quoting Management: CBS’s content continues to fuel the success of this great company,” said Sumner Redstone, Executive Chairman, CBS Corporation. “In a world where great programming commands premium pricing, we continue to hit on all cylinders. I am extremely pleased with our terrific second-quarter results, and I am confident that Leslie and his management team will build on our momentum in the quarters and years to come.”
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 79.7% and in the fourth quarter of the last fiscal year, the figure rose 30.7%.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 10 cents in the first quarter, by 4 cents in the fourth quarter of the last fiscal year, and by 4 cents in the third quarter of the last fiscal year.
Revenue fell last quarter after increasing in the previous quarter. Revenue rose 11.8% to $3.92 billion in the first quarter from the year earlier.
Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from 63 cents a share to 64 cents over the last thirty days. For the fiscal year, the average estimate has moved up from $2.36 a share to $2.50 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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