) recorded a new 52-week high of $55.58 yesterday, gaining
momentum from phenomenal second-quarter 2013 results. At the end
of the trading session, the stock closed at $54.88, up
approximately 40% year to date.
The current price is 4.8% above the Zacks Consensus average
price target of $52.39. Moreover, the stock is currently trading
at a forward P/E of 17.9x, a marginal discount to the peer group
average of 18.0x. The long-term EPS growth rate stands strong at
CBS Corporation posted the highest ever quarterly profits in
its history. Higher licensing and affiliate income boosted the
quarterly profits. Moreover, lower interest expenses and share
buybacks cushioned the bottom line.
The quarterly earnings of 76 cents a share comfortably
surpassed the Zacks Consensus Estimate of 72 cents and jumped 12%
year over year. Total revenue of $3,699 million for the quarter
handily surpassed the Zacks Consensus Estimate of $3,512 million
and increased 11% from the prior-year quarter.
Going forward, the company is poised to benefit from its
strategic expansion initiatives. We expect its growth momentum to
continue in 2013 based on reverse compensation from affiliates,
strong demand of its content, digital distribution, syndication
sales and retransmission consent.
Moreover, CBS Corporation is focused on lowering its
dependency on advertising and is laying more emphasis on
increasing subscription based revenue channels. The company's
non-advertising revenue now accounts for 43% of the company's
total revenue. This remains a positive as advertising revenue is
highly susceptible to economic headwinds.
Alongside, CBS continues to benefit from its streaming deals
).These measures facilitate CBS in monetizing its content.
CBS also acquired the remaining 50% stake in TV Guide Digital,
including the TVGuide.com and TV Guide Mobile properties from
Lions Gate Entertainment Corp
), which is believed to be a major boost for the company's
Currently, CBS holds a Zacks Rank #3 (Hold).
AMAZON.COM INC (AMZN): Free Stock Analysis
CBS CORP (CBS): Free Stock Analysis Report
LIONS GATE ETMT (LGF): Free Stock Analysis
NETFLIX INC (NFLX): Free Stock Analysis
To read this article on Zacks.com click here.