Shares of media conglomerate
) have risen 5% since Feb 12, when it posted impressive
fourth-quarter results. The momentum gathered from the company's
sturdy performance led the stock to hit a new high of $65.93 on
Friday, when it eventually closed at $64.96. The stock has
amassed a return of 52.7% over the past year.
The company ended its superb run for 2013 on a high note as the
fourth-quarter adjusted earnings of 78 cents grew nearly 22% year
over year and surpassed the Zacks Consensus Estimate of 76 cents.
For the full year, earnings came in at $3.02 per share, a penny
ahead of the Zacks Consensus Estimate and up 18.4% year over
Similarly, total revenue of $3,911.0 million cruised ahead of the
Zacks Consensus Estimate of $3,831 million and grew 5.8% from the
prior-year quarter. Full-year revenues of $15,284 million were
ahead of the Zacks Consensus Estimate of $15,194 million and up
8.5% year over year.
CBS mainly benefitted from content monetization and rise in
non-advertising revenue. Recently, it signed several deals with
) among others to put its programming (Under The Dome and Extant
for Amazon, Elementary and Blue Bloods for HULU) on a diverse
range of platforms and make this a steady source of revenue.
Moreover, the company announced an accelerated share repurchases
program of $1.5 billion on the same day as the earnings
release. CBS will buyback $2 billion worth of shares in the
first quarter reflecting the company's priority to maximize
Needless to say, this Zacks Rank #3 (Hold) stock is firing on all
cylinders and this growth momentum is expected to continue in
2014 and beyond. Given the increasing reverse compensation
from affiliates, strong demand of its content, digital
distribution, syndication sales and retransmission consent, CBS
is poised to benefit from diversification of revenue streams.
The New York-based company currently trades at a forward P/E of
18.7x, in line with its peer group. Also, its last traded price
is roughly 6% below the Zacks Consensus average analyst price
target of $69.14. Average volume of shares traded over the last 3
months stands at approximately 4,917.7K. The company's long-term
EPS growth rate is 11.3%.
Other than CBS,
The Walt Disney Co.
McGraw Hill Financial, Inc.
) also reached highs of $79.47, and $82.05 respectively, on Feb
AMAZON.COM INC (AMZN): Free Stock Analysis
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