CBS Corp. (CBS-A) chief executive Lesley Moonves told analysts Thursday that every division at the company was exceeding expectations, and no short-term effects from the writers strike or the economy were affecting the company's performance. He also asserted the company was undervalued.
"As we look toward a potential downturn in our economy... we haven't seen any evidence of it, neither in the fourth quarter nor the beginning of the first quarter including our local businesses," Moonves told Citigroup's Annual Global Entertainment, Media & Telecommunications Conference.
"The fundamentals of all our businesses are sound," he added.
When questioned on what he was going to do with the excess cash available, he was quick to say there were no more stock buybacks in the immediate future. The company had just spent $3 billion in buybacks in 2007. He did say the company was looking for a good acquisition in the new media space, which also had potential for strong growth.
The presidential election year is also helping the company alot, as it is all broadcast networks, with CBS projected to garner about 10 percent of the approximate $3 billion being spent this year. For its owned and operated stations they could gain about $250 million, according to analysts' estimates. Moonves said he wouldn't confirm or deny the numbers. He did say they were in the ballpark though.
CBS is especially strong in this area because they are the largest TV owner in the major markets, so the political season bodes well for them.
Even so, the stock has struggled, as it's down 10 percent year to date, and 30 percent from last summers' highs.
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