Investors Bring Volatility to CBS and Marriott Shares After Earnings

CBS Corporation (NYSE:CBS) reported net income above Wall Street’s expectations for the fourth quarter. Net income for the broadcasting company rose to $370 million (55 cents per share) vs. $283 million (41 cents per share) in the same quarter a year earlier. This marks a rise of 30.7% from the year earlier quarter. Revenue fell 3% to $3.78 billion from the year earlier quarter. CBS Corporation reported adjusted net income of 57 cents per share. By that measure, the company beat the mean estimate of 53 cents per share. It fell short of the average revenue estimate of $3.91 billion.

“CBS’s strategy of producing and distributing industry-leading content around the world and across multiple platforms continues to pay off,” said Sumner Redstone, Executive Chairman, CBS Corporation. “Our programming gets stronger every year, and our financial performance grows more and more robust. I am proud of the efforts of Leslie and his team, and I am certain CBS will continue to be a powerhouse throughout this year and beyond.”

Competitors to Watch: Tiffany & Co. (NYSE:TIF), Liz Claiborne, Inc. (NYSE:LIZ), Guess?, Inc. (NYSE:GES), and Polo Ralph Lauren Corp. (NYSE:RL).

Marriott International Inc.(NYSE:MAR) reported its results for the fourth quarter. Net income for the lodging company fell to $141 million (41 cents per share) vs. $173 million (46 cents per share) a year earlier. This is a decline of 18.5% from the year earlier quarter. Revenue rose 1.4% to $3.69 billion from the year earlier quarter.  Marriott International Inc. reported adjusted net income of 46 cents per share. By that measure, the company fell short of mean estimate of 47 cents per share. It fell short of the average revenue estimate of $3.77 billion.

J.W. Marriott, Jr., chairman and chief executive officer of Marriott International, said, “2011 was a great year. Occupancies and room rates improved at our hotels in most markets around the world. We increased our global hotel distribution and spun off our timeshare business as Marriott Vacations Worldwide Corporation, a new separately traded public company. Return on invested capital increased dramatically and meaningful top line growth in our lodging business helped drive base and franchise fees beyond their prior peak in 2008. Adjusted earnings per share was outstanding and we returned over $1.5 billion to our shareholders through share repurchases and dividends.”

Competitors to Watch: Starwood Hotels & Resorts Worldwide, Inc (NYSE:HOT), Wyndham Worldwide Corp. (NYSE:WYN), Hyatt Hotels Corporation (NYSE:H), Silverleaf Resorts, Inc. (NASDAQ:SVLF), Choice Hotels Intl., Inc. (NYSE:CHH), Gaylord Entertainment Co. (NYSE:GET), Bluegreen Corporation (NYSE:BXG), Red Lion Hotels Corp. (NYSE:RLH), and InterContinental Hotels Group PLC (NYSE:IHG).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com