) announced third quarter earnings after the bell today, posting
in-line with the Zacks Consensus EPS estimate of $0.76. Moreover,
revenues were above the Zacks Consensus Estimate of $3.53
billion, by 0.1 billion.
One of the most interesting items from the announcement
regarded the Outdoor Americas division which is supposed to be
spun into a standalone REIT IPO in early Q1 2014.
Management announced that half of the division's revenue would
come from fast growth non-advertising revenue. This is more
than the street anticipated. Moreover, it is a strong
indication of the IPO's growth potential going forward.
Another driver was the renewal of the
Time Warner Inc
) cable deal, in the early part of the quarter, which restored
CBS's content with the cable company. The agreement ended
an almost month long dispute between the two companies. And
not soon enough for football fans.
According to Leslie Moonves President and Chief Executive
Officer, CBS Corporation "Our record third-quarter results-driven
by double-digit revenue growth-are the continuation of a
phenomenal first half, and provide more clarity on what will be
another amazing full year for the CBS Corporation." "We continue
to launch new hits-from
Under the Dome
this summer to the top three new comedies on television this
fall. Through our studio, we have an ownership interest in most
of these shows, meaning that their success not only boosts our
base business, but also our newer revenue streams as well,
including very strong growth in retransmission consent fees,
reverse compensation, international sales and all the
opportunities afforded to us by exploding advances in technology.
Plus, we are working toward a new advertising model in which we
get paid for the significant, additional viewing that is
increasingly taking place after a show first airs."
In afterhours trading, CBS is down less than 1% on very light
volume. Tomorrow morning Zacks will have a full earnings
report covering TV ad growth, mobile news, and the overall impact
of the contract negations with TWX.
CBS CORP (CBS): Free Stock Analysis Report
TIME WARNER INC (TWX): Free Stock Analysis
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