Wall Street Falls on Friday
U.S. stocks were in the red on Friday on the back of tensions between President Donald Trump and Huawei. The Dow Jones Industrial Average fell 0.10% to 26,349, the S&P 500 Index lost 0.40% to 2,926 and the Nasdaq Composite Index swelled 0.61% to 7,990.
Shares of CBS Corp. (NYSE:CBS) fell 4% after it announced second-quarter results. The company posted earnings of $1.16 per share on $3.81 billion in revenue, reflecting 9.8% growth from the prior-year quarter. The company beat earnings estimates by 3 cents and revenue expectations by $100 million.
In a statement, President and CEO Joe Ianniello commented on the company's performance:
"We achieved double-digit revenue growth in the second quarter, with increases in each of our three key revenue sources. Our direct-to-consumer services, CBS All Access and Showtime, continue to perform strongly, helping fuel a 13% increase in affiliate and subscription fee revenue for the quarter. And we remain on track to reach our goal of 25 million subscribers combined by 2022. Meanwhile, advertising grew 7%, and we have continued momentum as we head into the back half of the year, thanks to another robust upfront, with solid gains in pricing. Content licensing also had a very strong quarter, up 12%, as we continue to build a lucrative portfolio by creating must-have programming for our own content brands in addition to highly successful content for third-party platforms."
Operating income grew 5% from the prior-year quarter to $695 million. Adjusted operating income increased 1% to $702 million. Both increases resulted from strong revenue growth, partially offset by higher costs.
The operating cash flow was an outflow of $124 million and the free cash flow was $157 million, compared with an inflow of $326 million and free cash flow of $296 million in the year-ago quarter.
Publishing revenue increased 5.3% to $218 million, with higher print book and digital audio sales. The segment's operating income increased 6.5% to $33 million. Local Media revenues grew 0.7% to $423 million on the back of higher advertising revenues provided by the NCAA Tournament broadcast. Local Media operating income climbed 1.6% to $130 million, driven by solid revenue growth.
During the quarter ended June 30, Mario Gabelli (Trades, Portfolio) boosted his holding by 3.46% to 301,149 shares.
Gainers
News Corp. (NASDAQ:NWSA) +5.4%
News Corp. (NASDAQ:NWS) +5.1%
Advanced Micro Devices Inc. (NASDAQ:AMD) +3.5%
Broadcom Inc. (NASDAQ:AVGO) +3.1%
Hess Corp. (NYSE:HES) +2.1%
Losers
DXC Technology Co. (NYSE:DXC) -30.3%
Capri Holdings Ltd. (NYSE:CPRI) -4.9%
Albemarle Corp. (NYSE:ALB) -4.4%
PVH Corp. (NYSE:PVH) -4.4%
Under Armour Inc. (NYSE:UAA) -4.3%
Global markets
The main European stock markets traded in the red. The U.K.'s FTSE 100 slid 0.44%, France's CAC 40 tumbled 1.11%, Germany's Dax retreated 1.28% and Spain's Ibex 35 fell 1.25%.
In Asia, Japan's Nikkei 225 rose 0.44%, India's BSE Sensex gained 0.68%, Hong Kong's Hang Seng fell 0.69% and China's Shanghai Composite sunk 0.71%.
Disclosure: The author holds no positions in any stocks mentioned.
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This article first appeared on GuruFocus.
