Viacom Inc. (VIAB) Meets Earnings Lags Revenue - Tale of the Tape
Viacom Inc. (VIAB) is a leading entertainment content company that operates primarily in the U.S. and Europe. The company offers many of the world’s best known entertainment brands through television, motion picture, Internet and mobile platforms. Viacom is a global leader in the creation, promotion and distribution of entertainment, news and music programs.
The recent acquisition of British public service broadcaster, Channel 5 Broadcasting Ltd., is expected to drive Viacom’s operating income in the upcoming quarters. Moreover, strong movie line-ups coupled with expansion of digital content distribution deals will continue to boosts the company’s top line going forward.
However, matured U.S. TV market coupled with volatile scatter advertising rates and with growing presence in emerging markets like India will further expose the company to foreign currency exchange rate risk.
Currently, Viacom has a Zacks Rank #4 (Sell), but that could definitely change following its earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Viacom meets earnings. Our consensus earnings estimate called for EPS of $1.29/share which is in line with the company’s reported EPS. Investors should note that these figures take out stock option expenses.
Revenue: Viacom reported revenues of $3,344 million. This missed our consensus estimate of $3,436 million.
Key Stats to Note: Viacom reported 6% drop in domestic advertising revenues but international advertising revenues grew by 3% mainly driven by newly acquired Channel 5.
Stock Price: Viacom shares were fell 0.95% ahead of the report. Clearly, the initial reaction to the release is negative.
Check back later for our full write up on this Viacom earnings report later!
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