Deutsche Bank Cuts CBS Forecast

July 1, 2009

NEW YORK: Deutsche Bank cut its earnings estimates on CBS for the second quarter, AP reports. A Deutsche Bank analyst was quoted as saying that earnings were expected to come in at 6 cents a share, compared to the forecasted average of 10 cents. The investment bank scaled back its outlook because of skepticism about a rally in the media segment. Some investors see signs of the advertising market on a rebound the Deutsche analyst said, but that would be challenging “given the sorry state of the consumer.” A rating of “hold” was reinforced.

Standard & Poor’s cut CBS’s corporate credit rating earlier this month, from BBB to BBB-, and issued a negative outlook on the company. S&P rolled back its rating on concerns that the media company’s revenues weren’t sufficient to manage its leverage.

A shares of the company slid a bit on the Deutsche news, from more than $7 to less than $6.90 in Tuesday afternoon trading. The stock was inching back toward $7 today. Share opened the year near $9 and reached a nadir March 9, along with much of the market, when they hit $3.06.

-- Deborah D. McAdams

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