CBS Corporation
(
CBS
) is slated to report its first-quarter 2012 financial results on
Tuesday, May 1. The current Zacks Consensus Estimate for the
quarter stands at 43 cents per share, indicating an estimated
increase of 48.3% from the prior-year quarter. Revenue, as per the
Zacks Consensus Estimate, is $3,775 million.
Fourth-Quarter 2011, a Synopsis
CBS Corporation's quarterly earnings of 57 cents a share
surpassed the Zacks Consensus Estimate of 53 cents, surging 23.9%
from 46 cents earned in the year-ago quarter.
However, revenue inched down 3.1% year over year to $3.78
billion, which was a healthy number as the quarter lacked
significant political advertising revenues compared with the
prior-year quarter. Moreover, the prior-year quarter's revenue
included the second-cycle syndication sale of
CSI: Crime Scene Investigation
.
Estimate Revisions Trend
Agreement
A positive sentiment is evident among the analysts for the
upcoming quarter. Among the 21 analysts providing estimates for the
quarter, four revised their estimates upward while none moved in
the opposite direction in the last 30 days. For fiscal 2012, five
analysts revised the estimates in the upward direction while none
lowered the same.
Magnitude
The Zacks Consensus Estimate for the first quarter remained
stable over the last 30 days. Most of the analysts remained
constructive on the stock based on the company's growth prospects.
The Zacks Consensus Estimate inched up a penny to $2.36 for fiscal
2012 as the analysts expect healthy political TV advertising
revenues, which in turn, is anticipated to boost profitability.
According to the company's Chief Executive Officer Les Moonves,
profits are forecast to rise by $180 million, primarily due to
political ads, and surpass the profits of the last presidential
election year.
Positive Surprise History
With respect to earnings surprises, CBS Corporation has topped
the Zacks Consensus Estimate over the last four quarters in the
range of 7.6% to 52.6%. The average remained at 24.4%, indicating
that the company has outperformed the Zacks Consensus Estimate by
that same measure in the trailing four quarters.
Our Take
CBS remains well positioned to drive revenue in the coming
quarters through its strategic initiatives and operating
efficiencies. Management remains optimistic and expects the growth
momentum to continue in fiscal 2012 based on strong political
advertising, reverse compensation from affiliates, strong demand of
its content and streaming and retransmission consent.
Moreover, CBS is likely to benefit from an increase in political
ad spending as it owns more TV stations than its competitors
News Corporation
's (
NWSA
) Fox and
Comcast Corporation
's (
CMCSA
) NBC.
Recently, the company through one of its divisions, CBS
Interactive, has entered into a partnership with TwitchTV, a
leading video game broadcasting network and Major League Gaming (
MLG
), the world's most renowned eSports league. The company's
expansion into the fastest growing live gaming and eSports market
is likely to enhance its profitability.
We believe that CBS Corporation's long-term agreements with the
NFL, the NCAA, the SEC and the Grammys will generate stream of
positive cash flows for the company in the long run.
Currently, we have a long-term 'Outperform' rating on the stock.
Moreover, CBS Corp. holds a Zacks #1 Rank, which translates into a
short-term 'Strong Buy' rating.
CBS CORP (
CBS
): Free Stock Analysis Report
COMCAST CORP A (
CMCSA
): Free Stock Analysis Report
NEWS CORP INC-A (
NWSA
): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment
Research