Posted on 05/03/2007 12:30:48 PM PDT by abb
CBS (CBS) reported 6% lower first-quarter earnings as the sale of radio stations cut into its bottom line, but the media conglomerate's results managed to top Wall Street's expectation.
Shares were up 42 cents, or 1.3%, to $32.23.
The New York-based company's first-quarter profit fell to $213.5 million, or 28 cents a share, from $226.9 million, or 30 cents a share, a year earlier.
During the quarter, CBS sold radio stations in four cities for total proceeds of $236.4 million. Excluding the gain and tax costs from the deal, earnings from continuing operations climbed to $253.6 million, or 33 cents a share, from $234.5 million, or 31 cents a share, a year earlier.
The results on this basis topped analysts' average estimate by a penny, according to Thomson Financial.
The company's revenue inched up to $3.66 billion from $3.58 billion, exceeding Wall Street's forecast of $3.61 billion.
Revenue from television -- CBS' largest division -- rose 2% to $2.57 billion. The results were boosted by the airing of the Super Bowl and a shift in timing of the semifinals of the NCAA men's basketball tournament, which occurred in the second quarter last year.
The company's outdoor advertising division also had a 2% revenue gain, to $462.3 million. Revenue from the Simon & Schuster publishing division jumped 27% to $229.3 million.
Radio revenue slipped 9% to $397.5 million, pulled down by the asset sales.
The company's free cash flow climbed 17% to $753 million. Given CBS' slower-growth profile, the company's cash is eyed by shareholders looking to gain value through dividends and buybacks.
CBS increased its dividend by 10% in the quarter, and it has bought back 47 million of its shares, cutting its outstanding stock by 7%.
Looking ahead, CBS said it expects revenue and operating income to be comparable to that of 2006, consistent with its prior forecast. The company said the flat projection is the result of several factors, including higher expense for stock-based compensation, the sale of radio and television stations, the shutdown of the UPN network, and the loss of major urban outdoor transit contracts.
In 2006, CBS recorded earnings from continuing operations of $1.4 billion, or $1.79 a share, on revenue of $14.3 billion.
Ping
We need to fix up a photoshop of Katie in the place of the dog, doncha think?
Firing Imus didn’t help their earnings either.
Scott Pelly has taken the Dan Rather “straight faced liar” position at CBS. Wonder if he’s getting Dan’s old office ?
CBS = C(S)ee Bad Station
ROTFL.
But I thought only Rupert Murdoch does news stories that are slanted? You mean the biz reporters that don’t work for Rupert spin stuff?
>>>the sale of radio and television stations
1. They ate their seed corn and now they are starving.
2. It doesn’t really matter because radio and TV broadcast station as we know them, and the networks that were necessary to feed them are simply going away.
Radio and TV, or more properly audio and audio/visual infotainment will remain, but soon the stations will no longer be needed.
CBS may in for some real financial trouble as some of their standby’s like the CSI’s including NCIS start to jump the shark. The Unit may be doing that this season in only two seasons. Jericho may jump the shark next week.
Fox and FX continue to gain adults who can read and have disposable income with their shows versus the banial left wing bs of ABCNNBCBS.
BBC America, USA, SciFi, and the Hallmark channel continue to put out good series. BBC has a lot of bs, but their Robin Hood series seems to be a winner for Adults and families.
Won't help either when they lose his $40 million lawsuit.
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