We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Viacom (VIAB) Beats Earnings and Revenue Estimates in Q3
Read MoreHide Full Article
Viacom Inc. announced third-quarter fiscal 2016 (ending Sep 30) results wherein the bottom line and the top line beat the Zacks Consensus Estimate.
Adjusted net income from continuing operations in the reported quarter was $419 million, down 29% from $591 million recorded in the prior-year quarter. Adjusted earnings per share were $1.05, beating the Zacks Consensus Estimate of $1.02 but declining 29% year over year.
Meanwhile, total revenue in the quarter came in at $3,107 million, up 1.6% year over year and above the Zacks Consensus Estimate of $2,997 million. A strong U.S. dollar hurt the top line performance to a considerable extent. Meanwhile, quarterly adjusted operating income came in at $769 million, down 29% year over year.
At the end of the third quarter, Viacom had $192 million of cash & cash equivalents and $10,996 million of outstanding debt on its balance sheet compared with $506 million and $12,267 million, respectively, at the end of fiscal 2015.
Segmental Performance
Media Networks
Quarterly revenues totaled $2,513 million, down of 3% year over year. Quarterly operating profits came in at $872 million, down 22% year over year. Both Affiliated fee and ancillary revenues fell 7.7% and 8.5%, respectively, on an annualized basis. Also, on an annualized basis, worldwide affiliate revenues improved 9% while domestic affiliate revenues dropped 10% year over year. On the other hand, on a year-over-year basis, domestic advertising revenues decreased 4% while worldwide advertising revenues improved 13%.
Filmed Entertainment
At this segment, quarterly revenues improved 30% year over year to $621 million. Global Theatrical revenues increased over 100% year over year to $91 million post the June release of Teenage Mutant Ninja Turtles: Out of the Shadows while home entertainment business revenues fell 3.5% on an annualized basis. However, TV license fees improved 39% year over year. Quarterly operating loss stood at $26 million, against an operating profit of $48 million recorded in the third quarter of 2015. Also, ancillary revenues declined 10.9% year over year.
Currently, Viacom carries a Zacks Rank #5 (Strong Sell). Better-ranked companies in the broader entertainment and media sector include The EW Scripps Co. (SSP - Free Report) with a Zacks Rank #1 (Strong Buy) along with CBS Corp. and MSG Networks Inc. with a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Viacom (VIAB) Beats Earnings and Revenue Estimates in Q3
Viacom Inc. announced third-quarter fiscal 2016 (ending Sep 30) results wherein the bottom line and the top line beat the Zacks Consensus Estimate.
Adjusted net income from continuing operations in the reported quarter was $419 million, down 29% from $591 million recorded in the prior-year quarter. Adjusted earnings per share were $1.05, beating the Zacks Consensus Estimate of $1.02 but declining 29% year over year.
Meanwhile, total revenue in the quarter came in at $3,107 million, up 1.6% year over year and above the Zacks Consensus Estimate of $2,997 million. A strong U.S. dollar hurt the top line performance to a considerable extent. Meanwhile, quarterly adjusted operating income came in at $769 million, down 29% year over year.
At the end of the third quarter, Viacom had $192 million of cash & cash equivalents and $10,996 million of outstanding debt on its balance sheet compared with $506 million and $12,267 million, respectively, at the end of fiscal 2015.
Segmental Performance
Media Networks
Quarterly revenues totaled $2,513 million, down of 3% year over year. Quarterly operating profits came in at $872 million, down 22% year over year. Both Affiliated fee and ancillary revenues fell 7.7% and 8.5%, respectively, on an annualized basis. Also, on an annualized basis, worldwide affiliate revenues improved 9% while domestic affiliate revenues dropped 10% year over year. On the other hand, on a year-over-year basis, domestic advertising revenues decreased 4% while worldwide advertising revenues improved 13%.
Filmed Entertainment
At this segment, quarterly revenues improved 30% year over year to $621 million. Global Theatrical revenues increased over 100% year over year to $91 million post the June release of Teenage Mutant Ninja Turtles: Out of the Shadows while home entertainment business revenues fell 3.5% on an annualized basis. However, TV license fees improved 39% year over year. Quarterly operating loss stood at $26 million, against an operating profit of $48 million recorded in the third quarter of 2015. Also, ancillary revenues declined 10.9% year over year.
VIACOM INC-B Price, Consensus and EPS Surprise
VIACOM INC-B Price, Consensus and EPS Surprise | VIACOM INC-B Quote
Zacks Rank & Stocks to Consider
Currently, Viacom carries a Zacks Rank #5 (Strong Sell). Better-ranked companies in the broader entertainment and media sector include The EW Scripps Co. (SSP - Free Report) with a Zacks Rank #1 (Strong Buy) along with CBS Corp. and MSG Networks Inc. with a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>