CBS Corp Earnings Cheat Sheet: Profit Up

S&P 500 (NYSE:SPY) component CBS Corporation (NYSE:CBS) reported net income above Wall Street’s expectations for the third quarter. CBS is a mass media company with operations in entertainment, cable networks, publishing, local broadcasting, and radio.

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CBS Earnings Cheat Sheet for the Third Quarter

Results: Net income for the broadcasting company rose to $338 million (50 cents per share) vs. $317.3 million (46 cents per share) in the same quarter a year earlier. This marks a rise of 6.5% from the year earlier quarter.

Revenue: Rose 2% to $3.37 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CBS beat the mean analyst estimate of 46 cents per share. Analysts were expecting revenue of $3.43 billion.

Quoting Management: “These third quarter numbers speak to the strength, stability and progress of our operations,” said Leslie Moonves, President and Chief Executive Officer, CBS Corporation. “Once again, we turned top-line growth into strong double-digit OIBDA and EPS growth, while continuing to produce spectacular free cash flow year-to-date. Across the board, we have transformed CBS into a content company designed to perform in any environment. So far this season, the CBS Television Network is significantly outpacing the field with more programs in the top ten and top twenty in all key measures than all the other networks combined. Plus, we’re adding to the Network’s roster of up and coming shows with the #1 new comedy and the #1 new drama on television. Meanwhile, we continue to monetize our enormous library on new platforms, including domestic and international streaming deals signed since last quarter worth hundreds of millions of dollars. These content licensing deals are increasing the stability of our revenue base, and we are tracking ahead of our strategy to increase our mix toward more recurring, non-advertising revenue streams. Going forward, we are confident that we will close out 2011 strongly, and look forward to a terrific 2012 in which we will increasingly benefit from online video, retransmission consent, reverse compensation from affiliates, international and local opportunities as well as political advertising that promises to be very robust.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 13 cents in the second quarter, by 10 cents in the first quarter, and by 2 cents in the fourth quarter of the last fiscal year.

The company’s revenue has now risen for two straight quarters. In the second quarter, revenue increased 7.7% to $3.59 billion from the year earlier quarter.

Looking Forward: The average estimate for the fourth quarter remains unchanged at 54 cents a share. Over the past three months, the average estimate for the fiscal year has climbed from $1.80 per to share to $1.86.

Competitors to Watch: The Walt Disney Company (NYSE:DIS), Scripps Networks Interactive, Inc. (NYSE:SNI), Time Warner Inc. (NYSE:TWX), Comcast Corporation (NASDAQ:CMCSA), Cumulus Media Inc. (NASDAQ:CMLS), News Corporation (NASDAQ:NWSA), DISH Network (NASDAQ:DISH), DirecTV (NASDAQ:DTV), Netflix (NASDAQ:NFLX), Radio One, Inc. (NASDAQ:ROIAK), AOL Inc. (NYSE:AOL), Entercom Communications Corp. (NYSE:ETM), and Entravision Communication (NYSE:EVC).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)