CBS reported better than expected 4Q17 results but in what has been a consistent pattern for several years, the shares did not respond favorably. There has been a long list of issues for CBS shares mostly focused on the changing consumption of television as viewers migrate to services like Netflix and Hulu and younger viewers […]
TV stocks have had a good rally in the past week for the first time since May. Among Northlake positions, this includes Disney (DIS), CBS Corporation (CBS), and Nexstar Media Group (NXST). Each has rallied between 5-10% off of at or near 2017 lows. The challenges facing TV have metastasized this year. The issues are […]
Two years ago, in August 2015, Disney (DIS) set off the angst that has troubled traditional media stocks since by admitting to larger than expected subscriber losses at ESPN. We refer to August 2015 as the Media Meltdown. This May, another round of media companies created a smaller, mirror image decline in media stocks, this […]
Amid a tough quarter for media earnings, CBS was a bright spot. We have long liked CBS for two reasons and both were on display in 1Q17. First, management continues to execute quite well as evidenced by better than peer trends in national and local advertising and subscription fees. Second, and related to effective management, […]
CBS reported mixed results for 4Q16 in a quarter where that was widely expected due to difficult comparisons. The company showed three fewer Thursday night NFL games and lost 9 hours of primetime to election coverage. This led to revenues and operating income declining by -2%; ignoring the discontinued radio operations that are being sold. […]
CBS reported another solid quarter, supporting our view that it is among the best positioned traditional media companies in a challenging landscape as viewers use different devices to watch TV and new entrants like Netflix offer alternative viewing options. With the exception of Time Warner, which is being bought by AT&T, CBS has been the […]
CBS reported better than expected results for 2Q16, beating consensus estimates on both revenue and EPS. The upside came from the sales of owned content, especially the Star Trek to Netflix. Advertising growth at the CBS TV Network grew 2%, slightly below expectations for 3% growth. Wall Street is focusing on the advertising shortfall and […]
CBS reported a good quarter beating consensus EPS estimates comfortably with small upside in revenues. The implication is good performance on profit margins and that was indeed the case especially in the core entertainment assets (CBS Network and content production) and the local TV stations. Advertising drove the upside, with a gain of 31% exceeding […]
After a year of negative operating income growth and falling earnings estimates, CBS is back on track. The recently reported 4Q15 showed operating income growth of over 6% and for the first time in nearly two years, analysts maintained their earnings estimates. 2016 sets up very well for CBS with a stronger national TV adverting […]
CBS reported a mixed quarter against low expectations. The highlight of the quarter is the company is returning to growth on the operating income line with a big accelerating ahead on 2016 on the back of political advertising. CBS shares have perfomed poorly this year as earnings estimates moved steadily lower. At one point, Northlake […]
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