Earnings for CBS Corp (CBS-A) plunged by 48 percent from the same period last year. Reasons cited were the help of a one-off tax event and the sale of Paramount Parks.
Net earnings for the quarter were only $404 million or 55 cents a share, in contrast to $781.7 milion last year, or $1.02 a share. According to Reuters Estimates, on an adjusted basis, earnings for the last quarter increased by 54 cents, growing by more than the average analyst estimates of 51 cents a share.
Revenue for the quarter dropped by 3 percent to $3.4 billion, a lot of attributed to poor results from its radio and television divisions. The radio division especially performed poorly in ad revenue, with overall revenue dropping by 11 percent to $463.4 million. The company said without its divestitures it would have been a 5 percent drop.
For CBS television, they were down this quarter also, with revenue decreasing by 4 percent, finishing at $2.2 billion. Some of that is attributed to the NCAA basketball tournament airing in the first quarter of 2007.
One bright spot for the company was its Simon & Schuster division which had a real strong quarter with revenue's increasing by 14 percent. Outdoor advertising was also up rising by 4 percent for the quarter.
The company says it holds to its guidance for the reat of the year, saying revenue and operating income should end up similar to the results of 2006.
For the long term they expect revenue growth to be in the low single-digits, while operating income should be somewhere in the mid single-digits. For earnings per share, the company adds that it should grow in the higher single-digit range.
Even though the company has the most-watched broadcast channel, Fox (NWS-A) beats them in the key demographic; a major reason they aren't able to get the better advertising deals and profits are down.
Going ahead, there is a mixed response to CBS with some thinking it should be sold and others promoting a buy on the stock.
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