CBS 4Q earnings top views, but sales fall short

Feb 16, 2012 By RYAN NAKASHIMA , AP Business Writer

(AP) -- Broadcasting giant CBS Corp. said Wednesday that its earnings rose 31 percent in the final quarter of 2011, thanks to licensing shows to online video companies such as Netflix as well as cost-cutting that helped offset an advertising slowdown.

Revenue posted a surprising decline, and shares fell 77 cents, or 2.6 percent, to $28.80 in after-hours trading Wednesday.

Net income rose to $370 million, or 55 cents per share, from $283 million, or 41 cents per share, a year ago.

Excluding restructuring charges of $46 million, adjusted earnings came to 57 cents per share, beating the 53 cents expected by analysts polled by FactSet.

Revenue fell 3 percent to $3.78 billion from $3.9 billion. That was below the $3.9 billion expected by analysts, which would have been flat with a year ago.

In the fourth quarter, The CW, the joint venture network between CBS and ., entered deals to license shows like "The Vampire Diaries" to Netflix and Hulu after their initial airing on TV. Such sales are seen as being highly profitable and help reduce the company's reliance on advertising revenue, which is subjected to the ups and downs of the .

"As our momentum builds and our revenue mix becomes more steady and recurring, we are positioned to enhance margins, drive earnings, and return significant value to our shareholders for many years to come," CEO Leslie Moonves said in a statement.

fell 4 percent to $2.51 billion in the quarter and dropped 2 percent for the year to $9.01 billion.

For the full year through December, total revenue at New York-based CBS grew 1 percent to $14.25 billion from $14.06 billion. Net income rose 80 percent to $1.31 billion, or $1.92 per share, from $724 million, or $1.04 per share, in 2010.

Explore further: Line says no IPO this year

not rated yet
add to favorites email to friend print save as pdf

Related Stories

CenturyLink 3Q net income falls as expenses rise

Nov 02, 2011

(AP) -- Phone company CenturyLink Inc. says its third-quarter net income fell as rising operating expenses related to its April acquisition of larger phone company Qwest overshadowed increased revenue.

Qualcomm 3Q results beat Wall Street estimates

Jul 20, 2011

(AP) -- Wireless chip-maker Qualcomm Inc.'s results for the latest quarter beat Wall Street's expectations, and its projections for the current quarter are also above analysts' estimates.

Recommended for you

Line says no IPO this year

1 hour ago

The Japan-based operator of popular mobile messaging app Line said Monday it has decided not to go ahead with an initial public offering in Japan or overseas this year.

Alibaba makes Wall Street debut

Sep 19, 2014

Alibaba made its long-awaited Wall Street debut Friday on the heels of a record stock offering that opens the door to global expansion for the Chinese online retail giant.

Alibaba IPO to boost employee fortunes to $8 bn

Sep 19, 2014

Employees of Chinese e-commerce giant Alibaba will see their fortunes swell to nearly $8 billion as the company prepares a massive US stock offering that could be valued at $25 billion.

User comments : 0