Viacom (VIAB) Guides Q3 EPS Outlook Below Expectations

Viacom Inc. (Nasdaq: VIAB)(Nasdaq: VIA) provided an update on its financial expectations for the fiscal quarter ended June 30, 2016.

Based on preliminary information, Viacom expects to report adjusted diluted earnings per share within the range of approximately $1.00 to $1.05 for the third quarter of 2016. The Company said that its third quarter results will be impacted by the theatrical underperformance of Teenage Mutant Ninja Turtles: Out of the Shadows as well as a delay in completing a significant SVOD agreement.

*** The Street sees Q3 EPS of $1.38.

Viacom said that the domestic performance of the latest Teenage Mutant Ninja Turtles release was disappointing, but the company has a strong slate in the months ahead and looks forward to improvement at Paramount. The company also previously expected to complete a significant SVOD agreement in the quarter, but said the recent and highly public governance controversy negatively impacted the timing and its ability to achieve an optimal outcome with partners.

Viacom said that it expects domestic ad sales declines for the third quarter to be approximately 4%. The company also said it has substantially completed a very successful annual advertising upfront sales process.

Viacom will provide additional information regarding its third quarter results and business outlook during its regular quarterly conference call on August 4, 2016, following the release of its earnings announcement.

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