CBS Pleased With Q1 Results, Investors Less So
Wall Street Cheat Sheet submits: By David Gibbs Shares of CBS Corp. (CBS) are being bid lower Wednesday after-hours following the company’s in-line earnings report (see call transcript). The diversified media provider reported adjusted Q1 EPS of $0.05/share on revenue of $3.53 billion vs. estimates of $0.05/share on $3.45 billion. Revenues grew 12% year-over-year. Having more than doubled over the past year, in-line EPS was not enough, pushing shares down more than 3% after falling an additional 3% during regular trading. The driver behind the quarter was a growth in ad sales, which grew 17% YOY, and make up over two-thirds of CBS’ revenue. The company, which happens to be even more levered to the ad market than its closest competitors, had just went in the black on TV ad sales for the first time in over two years last quarter. Since then, CBS had reported that TV and radio ad sales were doing even better, but that the company planned to continue its focus on cutting costs and paying down debt.Complete Story »
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