Analyst: CBS Expected to Hit Q3 Estimates
October 28, 2009
NEW YORK: Wells Fargo analysts say
CBS is likely to hit its third-quarter estimates, with an upside for next year.
“Given various positive comments made by management coupled with a
healthier-than-expected scatter market, we anticipate CBS to at least meet--and
potentially exceed--Q3 expectations of 22 cents,” Wells Fargo’s Marci Ryvicker said,
noting both her firm’s and consensus for earnings per share. “Full year OIBDA [operating
income before depreciation and amortization] guidance should remain intact, at
$1.725 billion to $1.925 billion--we are currently forecasting $1.753 billion
while consensus is at $1.768 billion. Bottom line: We expect another positive
conference call, which is likely to boost the stock and move street numbers up
CBS (NYSE: CBS.A, CBS) will report
third-quarter results Nov. 5th at 4:30 p.m. Eastern. The media company
reaffirmed its own outlook on full-year 2009 results earlier this month for
OIBDA of between $1.725 billion to $1.925 billion.
Across broadcast, Ryvicker said another round of cost-cutting was expected.
“Based on Q3 results and various pre-announcements reported by some traditional
media companies thus far, we expect most pure-play broadcasters to report revenue
declines similar to or slightly better than Q2, which ranged from -20 to -15
percent,” she said. “Cost cuts are also likely to be substantial, resulting in
potential beats to the bottom line. We expect the overall tone of the conference
calls to be cautiously optimistic, with specific focus on plans to de-lever,
pricing, further cost cutting, retrans, auto, political and the potential for
More on CBS:
October 14, 2009: “CBS Reaffirms
CBS reaffirmed its outlook on full-year results for 2009, just as Sumner
Redstone said he would sell shares of the media company.
October 12, 2009: “CBS Scores Retrans With Cablevision”
On average, CBS (NYSE: CBS.A) has been getting about 50 cents per
subscriber a month.
October 1, 2009: “Moody’s Goes Stable on
Moody’s Investors Service changed its outlook on the U.S. TV broadcast
industry from “negative” to “stable.”
September 16, 2009: “Analyst Upgrades CBS”
“... we still see [approximately] 30 percent potential upside to the
July 28, 2009: “CBS Expected to Meet the
“Given that Street estimates for CBS have continued to come down over the
past month or so, we do not anticipate another significant miss...”
July 1, 2009: “Deutshe
Bank Cuts CBS Forecast”
The investment bank scaled back its outlook because of skepticism about a
rally in the media segment.
June 22, 2009: “CBS CFO Steps Down”
Fred Reynolds relinquished his CFO duties July 20. He’ll be succeeded by Joseph
Ianiello, who's been deputy CFO since November.
June 8, 2009: “S&P
Cuts CBS Credit Rating”
The rating outlook is negative, and was downgraded in part on falling
May 28, 2009: “CBS
Increases Senior Note Offering”
CBS Corp. is reopening its senior note offering to raise another $250 million.
May 8, 2009: “CBS TV
Segment Revenues Down 12 Percent”
CBS’s results for the first quarter reflected the absence of political spending
on TV as well as the soft market.