Q3 Preview: CBS Corp. (CBS) Might Surprise to Upside, Gain Ground Against Rivals
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Price: $40.77 --0%
Rating Summary:
20 Buy, 12 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
20 Buy, 12 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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CBS Corporation (NYSE: CBS) shares are trading lower Thursday afternoon heading into the company's third-quarter earnings report.
Expected out after the market close, the Street is looking for earnings of 46 cents per share on revenue of $3.43 billion. Over the last 11 quarters, CBS has bested estimates by an average of 15 percent, implying possible earnings of about 51 cents.
Shares of CBS stayed relatively flat through the quarter and are nearly 22 percent higher since then. The stock is 31 percent higher since the start of 2011. CBS has traded within a range of $15.99 to $29.68 over the last 52-week time frame.
At the end of last quarter, CBS held a book value of $14.89 and cash of $2.01 per share. Ex-cash, CBS is trading with a forward P/E of 10.3x next year's earnings, compared with 7.2x for News Corp (Nasdaq: NWSA), and 11.4x at Disney (NYSE: DIS).
Data from Bloomberg has 21 analysts with a Buy rating on CBS, eight at Hold and none with a Sell. The Street price target average is $30.50, with a low of $25 and high of $38.
Also of note, towards mid-October, which is outside the third-quarter spectrum, CBS and Warner (NYSE: TWX) announced a licensing agreement with Netflix (Nasdaq: NFLX) for CW programming. Read more about that here.
Wedbush is slightly bullish, seeing ad business in-line with potential upside from the Entertainment segment. The firm is modeling for EPS of 45 cents and revenue of $3.439 billion.
Wedbush sees third-quarter Entertainment EBITDA up 3 points to about 20 percent, Outdoor to 21 percent, and Local Broadcasting to 6 percent.
Looking ahead, Wedbush comments, "In the 4Q network scatter market, underperformance of new programs launched by NBC should favor networks like CBS with more stable ratings. Our 4Q estimates assume CBS sells scatter in the
mid-teens above upfront pricing, or slightly above the pricing premium which TWX (NEUTRAL) said Turner was getting, resulting in ~7% growth y/y."
Stay tuned to StreetInsider.com's EPS Insider section to see our analysis of the highly-anticipated quarterly results within seconds of their release. You can also check out CBS's past performance at Streetinsider's CBS Income Statement.
Expected out after the market close, the Street is looking for earnings of 46 cents per share on revenue of $3.43 billion. Over the last 11 quarters, CBS has bested estimates by an average of 15 percent, implying possible earnings of about 51 cents.
Shares of CBS stayed relatively flat through the quarter and are nearly 22 percent higher since then. The stock is 31 percent higher since the start of 2011. CBS has traded within a range of $15.99 to $29.68 over the last 52-week time frame.
At the end of last quarter, CBS held a book value of $14.89 and cash of $2.01 per share. Ex-cash, CBS is trading with a forward P/E of 10.3x next year's earnings, compared with 7.2x for News Corp (Nasdaq: NWSA), and 11.4x at Disney (NYSE: DIS).
Data from Bloomberg has 21 analysts with a Buy rating on CBS, eight at Hold and none with a Sell. The Street price target average is $30.50, with a low of $25 and high of $38.
Also of note, towards mid-October, which is outside the third-quarter spectrum, CBS and Warner (NYSE: TWX) announced a licensing agreement with Netflix (Nasdaq: NFLX) for CW programming. Read more about that here.
Wedbush is slightly bullish, seeing ad business in-line with potential upside from the Entertainment segment. The firm is modeling for EPS of 45 cents and revenue of $3.439 billion.
Wedbush sees third-quarter Entertainment EBITDA up 3 points to about 20 percent, Outdoor to 21 percent, and Local Broadcasting to 6 percent.
Looking ahead, Wedbush comments, "In the 4Q network scatter market, underperformance of new programs launched by NBC should favor networks like CBS with more stable ratings. Our 4Q estimates assume CBS sells scatter in the
mid-teens above upfront pricing, or slightly above the pricing premium which TWX (NEUTRAL) said Turner was getting, resulting in ~7% growth y/y."
Stay tuned to StreetInsider.com's EPS Insider section to see our analysis of the highly-anticipated quarterly results within seconds of their release. You can also check out CBS's past performance at Streetinsider's CBS Income Statement.
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