CBS Earnings: Here’s Why Shares are Down Now

CBS Corporation (NYSE:CBS) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.37%.

CBS Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 1.54% to $0.64 in the quarter versus EPS of $0.57 in the year-earlier quarter.

Revenue: Decreased 2.27% to $3.7 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: CBS Corporation reported adjusted EPS income of $0.64 per share. By that measure, the company missed the mean analyst estimate of $0.69. It missed the average revenue estimate of $3.79 billion.

Quoting Management: “CBS had a record year in 2012, as well as a record fourth quarter, and the momentum is building for an even better 2013,” said Leslie Moonves, President and Chief Executive Officer, CBS Corporation. “Advertising revenue is growing, and our revenue from non-advertising sources continues to grow even faster. This includes new recently signed streaming, retransmission consent, and reverse compensation deals as well as ongoing strength in domestic and international syndication sales. Meanwhile, the confidence and visibility we have in our operations, along with the strategic actions we’re pursuing at CBS Outdoor, have allowed us to announce today that we are accelerating the pace of our share repurchase program by another billion dollars. Going forward, returning value to our shareholders will continue to be a top priority for us. We feel very good about our future, and we are very encouraged by the strength of our core businesses and the increasing premium we are able to command for our content.”

Key Stats (on next page)…

Revenue increased 8.19% from $3.42 billion in the previous quarter. EPS decreased 1.54% from $0.65 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.64 to a profit $0.65. For the current year, the average estimate has moved down from a profit of $2.57 to a profit of $2.56 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)