CBS' (NYSE: CBS) net income exceeded Wall Street expectations in the third quarter. To gain insight into why the company reported as it did, investors might review the company's industry, financials, and commentary.
Earnings and Revenue:
CBS' EPS outpaced analyst estimates while the company's revenues came in below predictions. The company reported EPS of 50 cents/share versus the 46 cents/share estimate and revenues of $3.37 billion versus the $3.43 billion estimate. EPS rose 8.7% while revenue climbed 2% from the same period last year.
Revenue rose for a second quarter in a row as CBS' sales grew 7.7% to $3.59 billion in the second quarter as well.
Income:
For the year, CBS reported net income of $1.83/share. The company trumped analyst projections of $1.67 by 9.6%. According to the reported number, the company's income rose 6.5% from last year's levels.
Conference Call:
The conference call for third quarter earnings can be accessed here.
Official Comment:
"These third quarter numbers speak to the strength, stability and progress of our operations," said Leslie Moonves, President and Chief Executive Officer, CBS Corporation. "Once again, we turned top-line growth into strong double-digit OIBDA and EPS growth, while continuing to produce spectacular free cash flow year-to-date. Across the board, we have transformed CBS into a content company designed to perform in any environment. So far this season, the CBS Television Network is significantly outpacing the field with more programs in the top ten and top twenty in all key measures than all the other networks combined. Plus, we're adding to the Network's roster of up and coming shows with the #1 new comedy and the #1 new drama on television. Meanwhile, we continue to monetize our enormous library on new platforms, including domestic and international streaming deals signed since last quarter worth hundreds of millions of dollars. These content licensing deals are increasing the stability of our revenue base, and we are tracking ahead of our strategy to increase our mix toward more recurring, non-advertising revenue streams. Going forward, we are confident that we will close out 2011 strongly, and look forward to a terrific 2012 in which we will increasingly benefit from online video, retransmission consent, reverse compensation from affiliates, international and local opportunities as well as political advertising that promises to be very robust."
Industry:
With price/earnings growth of 1.3%, CBS' industry, media conglomerate, is expanding.
What to Do Next:
Now you're all set to decide what to do with those CBS shares until the next earnings announcement. Whether you buy, sell, or hold, check back with us before the company's next earnings release for a full preview.
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