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CBS Q2 Profit Surges, Helped by Netflix Deal (CBS)

By Dividend.com,  August 03, 2011, 08:42:52 AM EDT

Mass media giant CBS Corporation ( CBS ) 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 ( NFLX ).

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 Wednesday.

The Bottom Line
Shares of CBS Corp ( CBS ) 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 ( CBS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: CBS



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