Viacom Earnings: Here’s Why Investors are Excited Now

Viacom, Inc. (NASDAQ:VIAB) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 5.3%.

Viacom, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 32.99% to $1.29 in the quarter versus EPS of $0.97 in the year-earlier quarter.

Revenue: Rose 13.95% to $3.69 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Viacom, Inc. reported adjusted EPS income of $1.29 per share. By that measure, the company missed the mean analyst estimate of $1.30. It beat the average revenue estimate of $3.58 billion.

Quoting Management: Philippe Dauman, President and Chief Executive Officer of Viacom, said, “Viacom’s aggressive investment in content, outstanding operational execution and fiscal discipline helped deliver a strong quarter with double-digit revenue and profit growth. Domestic advertising revenue gains continued to accelerate at our Media Networks, as new, original programming drives improving ratings momentum. Viacom is also expanding partnerships with traditional cable operators and new digital distributors to deliver solid affiliate revenue gains. In a crowded summer season, Paramount’s tentpoles – Star Trek Into Darkness and World War Z – achieved critical and box office success, and the studio has a promising slate remaining through calendar 2013 and beyond.”

Key Stats (on next page)…

Revenue increased 17.8% from $3.14 billion in the previous quarter. EPS increased 34.38% from $0.96 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 $1.53 to a profit $1.54. For the current year, the average estimate has moved down from a profit of $4.70 to a profit of $4.69 over the last ninety days.

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