CBS 1Q earnings seen up on resale fees

CBS 1st-quarter profit seen up on resale of shows to traditional, online distributors

Associated Press

LOS ANGELES (AP) -- CBS Corp., the broadcaster behind shows like "The Good Wife" and "Blue Bloods," reports its first-quarter results after the market closes on Tuesday. Analysts are looking for profit and revenue growth to continue as the company reaps more money from traditional and online distributors

WHAT TO WATCH FOR: Entertainment revenue is seen rising, driven by higher fees paid by cable and satellite companies for the right to retransmit CBS network signals. Also, CBS will likely report new revenue from the sale of shows to and the sale of reruns of "CSI: Miami" to the AMC Network.

As usual, advertising trends will be in focus as the company continues to make about 63 percent of its revenue from advertising.

Nomura analyst Michael Nathanson expects ad revenue across CBS's TV and radio stations, outdoor billboards, websites and broadcast network to rise 3 percent this year and 1 percent in 2013. Analysts will look at the quarter's results to see whether trends are on track.

WHY IT MATTERS: CBS's results are a bellwether for the advertising market, which is one indicator of the health of the broader economy. Its ability to sell shows to distributors such as Netflix is also a reflection of consumers' changing media consumption habits. As a creator of shows, CBS programming is a kind of cultural touchstone for Americans. It makes shows such as "Hawaii Five-O" and "NCIS" and is co-creator of programs like "Criminal Minds" and "Rules of Engagement."

EXPECTATIONS: Analysts polled by FactSet expect CBS to post net income of $288 million in the quarter through March, and an adjusted 44 cents per share of earnings. Revenue is seen at $3.78 billion.

LAST YEAR: In the first quarter a year ago, CBS posted $202 million in net income and adjusted earnings of 29 cents per share. Revenue was $3.51 billion.

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