Mass media giant CBS Corporation (
) late Tuesday said its second quarter profit more than doubled
from last year, aided mainly by new content licensing deals with
online content distributor Netflix (
The New York-based company reported second quarter net income of
$395 million, or 58 cents per share, compared with $150 million, or
22 cents per share, in the year-ago period.
Revenue rose 8% from last year to $3.59 billion.
On average, Wall Street analysts expected a much smaller profit
of 45 cents per share on lower revenue of $3.55 billion.
The company noted that while advertising revenue rose only 3%
from last year, content licensing and distribution business revenue
jumped 21%. That uptick was mainly due to a new deal with Netflix
to distribute some of CBS' older TV shows.
CBS shares rose 46 cents, or +1.8%, in premarket trading
The Bottom Line
Shares of CBS Corp (
) have a 1.52% dividend yield, based on last night's closing stock
price of $26.28. The stock has technical support in the $24-$26
price area. If the shares can firm up, we see overhead resistance
around the $29-$30 price levels.
CBS Corporation (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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