CBS Reaffirms 2009 Outlook
NEW YORK: CBS
reaffirmed its outlook on full-year results for 2009, just as Sumner Redstone
said he would sell shares of the media company. CBS said it’s expecting
operating income before depreciation and amortization to come in between $1.725
billion and $1.925 billion. Redstone’s privately held National Amusements
theater chain announced it would sell roughly 28.3 million shares of CBS for
expected proceeds of around $345 million. National Amusements intends to retain
control of more than 75 percent of the voting control of CBS, however.
CBS (NYSE: CBS.A, CBS) dipped briefly on the announcement, falling from around
$12.25 yesterday to nearly $11.80 before rebounding completely in early
“We are not overly surprised by the fact CBS reaffirmed its full-year guidance
given that we continue to hear that trends in the television and radio have
been improving,” Wells Fargo analyst Marci Ryvicker said. “However, the stock
sales were a surprise given that NAI [National Amusements] had no intent to
sell further shares after the last time it sold CBS stock--17 million shares of
CBS Class B stock on Oct. 13, 2008. Though this will likely put pressure on the
stock in the near term, we believe that the resolution of NAI’s debt issues is
a positive and will eventually remove the NAI overhang.”
More on CBS:
October 12, 2009: “CBS Scores Retrans With
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: “CBC Expected to Meet
“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.