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CBS Expected to Meet the Street

NEW YORK: CBS should meet analyst estimates for the second quarter, and full-year guidance for the media company "is likely to remain intact," Wachovia analyst Marci Ryvicker said in 2Q earnings preview.

"Given that Street estimates for CBS have continued to come down over the past month or so, we do not anticipate another significant miss, like what we saw in Q1," she said. "Nor do we anticipate a revision to management's full year [operating income before depreciation and amortization] guidance of $1.725 billion to $1.925 billion. We remain at $1.742 billion.

Wachovia estimates that CBS 2Q revenues will be down 13 percent to $3.052 billion versus the Street consensus of $3.055. OIBDA is pegged at $369 million, down 53 percent, versus consensus of $391 million, and earnings per share of 6 cents versus consensus of 8 cents. CBS reports Aug. 6.

Previous TVB coverage of CBS:
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. 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."

June 22, 2009: "CBS CFO Steps Down"
Fred Reynolds relinquished his CFO duties July 20, though he'll continue as an executive vice president, working with CEO Leslie Moonves on the transition of his responsibilities until his official retirement Aug. 15. He'll be succeeded by Joseph Ianiello, who's been deputy CFO since November.

June 8, 2009: "S&P Cuts CBS Credit Rating"
Standard & Poor's cut CBS's corporate credit rating from BBB to BBB- on Friday. The rating outlook is negative, and was downgraded in part on falling automotive revenues. A BBB- rating is S&P's lowest investment grade. CBS had debt of more than $7 billion at the end of March.

May 28, 2009: "CBS Increases Senior Note Offering"
CBS Corp. is reopening its senior note offering to raise another $250 million. The 8.875 percent notes come due in 2019. CBS previously issued $350 million in likewise notes on May 13, for a current total of $600 million. The two issuances, along with the $400 million of 8.2 percent senior notes due 2014 issued by the company May 13, bring CBS's total senior note offerings for the month to $1 billion.

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. The TV operations generated $2.23 billion in revenue, down 12 percent from the $2.54 billion posted a year ago. Operating income for the stations and the network was $184.7 million, compared to $404.8 million a year ago.