Barrington Positive on Viacom's New Management Strategy
Barrington Research has published a research report on Viacom (NYSE: VIA.B) after the company reported operating results that showed the substantial profitability to come from management's new strategy.
In the report, Barrington writes, "Paramount is achieving improvement in its operating results, confirming the wisdom of the newer approach management has taken toward the studio. Several elements of its strategy include a reduced release film slate and focus on franchise films, plus the use of proprietary Viacom brands such as those developed in the Nickelodeon and MTV cable channels. Paramount has now achieved an operating margin level of around 6%, just over half way to the levels achieved by Warner Bros. but well above the break-even levels that existed until very recently. Theatrical revenues totaled $770 million. Filmed entertainment generated notably better-than-expected revenues of $1,793 million."
Barrington maintains its Outperform rating on Viacom, which is currently trading up $0.03 from yesterday's $45.05 closing price.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.