Categories AlphaGraphs, Consumer, Earnings, Technology

CBS Q3 profit falls 18% but beats estimates

CBS Corp (CBS) reported an 18% dip in earnings for the third quarter due to costs relating to corporate matters, and lower discontinued operations. However, the top and bottom lines exceeded analysts’ expectations.

Net income fell 18% to $488 million and earnings declined 12% to $1.29 per share. Adjusted EPS increased 12% to $1.24.

CBS third quarter 2018 Earnings Infographic
CBS Q3 2018 Earnings Infographics

Revenue rose 3% to $3.26 billion. This was led by 79% growth from digital initiatives, including its owned streaming subscription services, and strong gains in retransmission revenues and fees from CBS Television Network-affiliated stations.

Looking ahead into the full year 2018, CBS remained on track to achieve its outlook, with revenue growth in the high-single digits and EPS growth in the high teens.

For the third quarter, advertising revenues grew 14%, including revenues of Network 10, which the company acquired in the fourth quarter of 2017, and higher political advertising sales. Content licensing and distribution revenues were up 8% for the quarter. This was partially offset by Showtime Networks’ distribution of the Floyd Mayweather/Conor McGregor pay-per-view boxing event, which took place in the third quarter of 2017.

CBS stock fumbles despite solid Q2 results

Entertainment revenues increased 19% year-over-year helped by higher advertising revenue, higher station affiliation fees and revenues from digital initiatives, higher international licensing, as well as additional series produced for third-parties.

Higher print book sales and digital audio sales drove Publishing revenues higher by 5%. Local Media revenues increased 9% on growth in retransmission revenues and higher advertising revenues, reflecting increased political advertising sales associated with the U.S. midterm elections.

However, Cable Networks revenues dropped 32% as a result of Showtime Networks’ distribution of the Floyd Mayweather/Conor McGregor pay-per-view boxing event in the third quarter of 2017.

Shares of CBS ended Thursday’s regular session up 1.99% at $58.49 on the NYSE. The stock has fallen 0.86% in the year so far while it has risen over 4% in the past year.

 

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

V Earnings: Key quarterly highlights from Visa’s Q1 2023 financial results

Visa Inc. (NYSE: V) reported first quarter 2023 earnings results today. Net revenues grew 12% year-over-year to $7.9 billion. GAAP net income rose 6% to $4.2 billion while EPS grew

Earnings: Highlights of Intel’s (INTC) Q4 2022 financial results

Intel Corporation (NASDAQ: INTC) Thursday reported a decline in adjusted earnings and revenues for the fourth quarter. The semiconductor giant also provided guidance for the first quarter of 2023. Fourth-quarter

McCormick (MKC) expects to drive sales growth in 2023 through pricing actions and cost savings

Shares of McCormick & Company Inc. (NYSE: MKC) were down over 5% on Thursday after the company missed expectations on its fourth quarter 2022 results and provided a lower-than-expected earnings

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top