CBS 4Q earnings top views, but sales fall short

February 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: Disney 1Q revenue misses estimates but profits up

0 shares

Related Stories

CenturyLink 3Q net income falls as expenses rise

November 2, 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

July 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

Samsung to disable Note 7 phones in recall effort

December 9, 2016

Samsung announced Friday it would disable its Galaxy Note 7 smartphones in the US market to force remaining owners to stop using the devices, which were recalled for safety reasons.

Swiss unveil stratospheric solar plane

December 7, 2016

Just months after two Swiss pilots completed a historic round-the-world trip in a Sun-powered plane, another Swiss adventurer on Wednesday unveiled a solar plane aimed at reaching the stratosphere.

Solar panels repay their energy 'debt': study

December 6, 2016

The climate-friendly electricity generated by solar panels in the past 40 years has all but cancelled out the polluting energy used to produce them, a study said Tuesday.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.