Why Viacom Earnings Are Not Enough
Viacom released mixed fiscal third-quarter financial results before the markets opened on Thursday.
Viacom Inc. (NASDAQ: VIAB) released its fiscal third-quarter financial results before the markets opened on Thursday. The company said that it had $1.18 in earnings per share (EPS) and $3.24 billion in revenue, which compares with consensus estimates of $1.07 in EPS and revenue of $3.26 billion. In the same period of last year, Viacom said it had EPS of $1.17 and $3.26 billion in revenue.
During the most recent quarter, the Media Networks segment increased its momentum, with growth in television share, significant gains in digital consumption and live event attendance, sequential improvement in domestic affiliate revenue growth and savings from cost transformation initiatives.
Separately, Paramount Pictures, within the Filmed Entertainment segment, is delivering on its turnaround, with strong current quarter releases driving domestic theatrical revenues up 58%, continuing growth in television production and increasing profitability.
The revenue for the segments broke down like this:
- Media Networks revenues decreased 2% year over year to $2.50 billion.
- Filmed Entertainment revenues decreased 9% to $772 million.
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Bob Bakish, president and CEO, commented:
Viacom produced another quarter of strong progress, with clear evidence that our turnaround is delivering results and that our evolution into a truly global, multiplatform, brand- and IP-driven entertainment company is well underway. Paramount Pictures is revitalized, with outstanding box office performance and growing television production revenues driving substantial gains in profitability. Our Media Networks brands posted significant gains in both linear flagship share and digital consumption, in addition to sequential improvements in domestic affiliate revenue growth.
Shares of Viacom closed Wednesday at $28.62, with a consensus analyst price target of $34.50 and a 52-week range of $22.13 to $35.55. Following the announcement, the stock was down less than 1% at $28.50 in early trading indications Thursday.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
