CBS Corporation (CBS) issued its fourth-quarter report after the bell today. The results should make shareholders happy. Adjusted net income rose an incredible 77% to 46 cents per share, according to the press release. That number went beyond the estimate by two pennies as indicated by TheFly.

Considering how the stock has fared over the past twelve months, one would have expected a good earnings report. The 52-week low for the shares is $12.26 while the 52-week high is $22.25. The chart communicates a company backed by some solid momentum.

Continue reading CBS Tops Estimate in Q4: Buy the Stock?

CBS Tops Estimate in Q4: Buy the Stock? originally appeared on BloggingStocks on Wed, 16 Feb 2011 18:00:00 EST. Please see our terms for use of feeds.

CBS (CBS) reported third-quarter earnings last Thursday after the bell. On Friday, the shares closed down 3.7% to $17.01. The 52-week high for the stock is $18.20. Although the one-year chart doesn't show a smooth uptrend, it does indicate that the shares have exhibited a certain amount of strength. But does the sell-off on Friday, which was backed by strong volume, tell us that the stock should be avoided?

I've been cautious about this company. I have to admit, though, that it delivered a decent Q3. The press release says that adjusted profit jumped 40% to 35 cents per share. According to the Associated Press, that figure beat projections by four pennies. The AP article also mentioned something not so surprising: advertising dedicated to political races helped the period.

Continue reading CBS: Buy or Sell After Q3?

CBS: Buy or Sell After Q3? originally appeared on BloggingStocks on Mon, 08 Nov 2010 09:30:00 EST. Please see our terms for use of feeds.

Shareholders of Disney (DIS) are looking forward to a little boost this

Yet, I have a thought to propose to the media industry: Should Disney charge viewers to see the finale?

Continue reading Should Disney Have Charged for the 'Lost' Finale?

Should Disney Have Charged for the 'Lost' Finale? originally appeared on BloggingStocks on Wed, 19 May 2010 13:00:00 EST. Please see our terms for use of feeds.

Ahhh, Hulu. That wonderful destination where I can re-acquaint myself with my favorite Justin-Timberlake-on-SNL moments, catch up on episodes of Greek, and search for those old Silver Spoons clips I remember so fondly. The two-year-old website is a joint venture between Walt Disney's (DIS) ABC Network, General Electric's (GE) NBC Universal division, and News Corp.'s (NWS) FOX Entertainment Group, and is partially funded by Providence Equity Partners.

But just as online news readers may soon be charged to access The New York Times online, we may have to open our wallets for certain corners of the Hulu universe (they will likely still let me watch Silver Spoons for free).

Continue reading Is the Free Ride Over at Hulu?

Is the Free Ride Over at Hulu? originally appeared on BloggingStocks on Mon, 01 Feb 2010 13:50:00 EST. Please see our terms for use of feeds.

While official ratings numbers from Thursday's national championship game between the Texas Longhorn and Alabama Crimson Tide football teams have yet to be released, I have a bad feeling that they will not be as good as ESPN hopes. Raise your hand if you tuned out after the Crimson Tide rolled to a 24-6 first-half lead and Texas was struggling with a freshman back-up quarterback at the helm. I would have my hand up right now, but it is awfully tough to type with one hand.

While the game promised to be good at the start, and actually had a relatively decent ending (from what I hear, unless you think this was the highlight of the night), I have a feeling that we will find out that the ratings for this game were lower than past couple of years. I know that I checked in on the game first thing this morning, only to find out that the finish was a bit closer than I expected, but I went to bed last night not worried that I was missing the last half of the BCS (or is it BS?) championship game.

Continue reading JockStocks: The Real Loser in the BCS National Championship Game May Be the Networks

JockStocks: The Real Loser in the BCS National Championship Game May Be the Networks originally appeared on BloggingStocks on Fri, 08 Jan 2010 15:45:00 EST. Please see our terms for use of feeds.

While teaching college students, one point I try to impress upon them is the the sheer size of the U.S. population, and its relationship to economics, markets, politics and public policy.

In a nutshell, the United States is an enormous, duty-free, standardized market, and there's perhaps no better example of just how big the nation is than cable TV.

Case in point, Sean Hannity's show on Fox News, weeknights at 9 p.m. EST. Hannity, a conservative commentator, can draw more than four million viewers nightly, and on a recent show he actually outdrew his colleague on Fox News, Bill O'Reilly, host of The O'Reilly Factor, the perennial ratings leader among cable TV commentary shows.

Continue reading The U.S. is a big country -- bigger than even cable TV

The U.S. is a big country -- bigger than even cable TV originally appeared on BloggingStocks on Wed, 02 Dec 2009 11:20:00 EST. Please see our terms for use of feeds.

Yet, when I look at the latest earnings report, I don't feel as upbeat as the market. According to the press release (the link goes to a .pdf file), revenues were flat for the third quarter and adjusted income dropped to 25 cents per share from the year-ago figure of 39 cents per share.

Continue reading CBS challenged in Q3, waiting for better advertising climate

CBS challenged in Q3, waiting for better advertising climate originally appeared on BloggingStocks on Fri, 06 Nov 2009 16:20:00 EST. Please see our terms for use of feeds.

CBS (NYSE: CBS), the famous broadcaster that competes with Disney's (NYSE: DIS) ABC, News Corp.'s (NASDAQ: NWS) Fox, and General Electric's (NYSE: GE) NBC, reported Q2 earnings on Thursday after the bell. If you judged the performance solely by the profit drop, you would have no choice but to feel sorry for CBS. The media company made an adjusted 8 cents per share. Last year at this time, CBS pulled in an adjusted 49 cents per share.

But the market looked past the significant income decline and instead seemed to focus on the fact that management beat Wall Street's expectations by a penny, according to Earnings.com estimates. Shares of CBS were up over 7% during yesterday's after-hours session.

Continue reading CBS tops estimates, but remains weak

CBS tops estimates, but remains weak originally appeared on BloggingStocks on Fri, 07 Aug 2009 09:00:00 EST. Please see our terms for use of feeds.

Continue reading Seacrest is in as "Idol" producer pays $45 million for its host

Seacrest is in as "Idol" producer pays $45 million for its host originally appeared on BloggingStocks on Mon, 13 Jul 2009 15:00:00 EST. Please see our terms for use of feeds.

Well, as Boorstin rightly points out, CBS (NYSE: CBS), Disney's (NYSE: DIS) ABC, General Electric's (NYSE: GE) NBC, and News Corp.'s (NASDAQ: NWS) Fox do need to worry. These DVR technologies basically translate to a drop in the economic value of advertising. Let's face it: who watches commercials when they don't have to?

Continue reading DVR and content companies: What should the broadcasters do?

DVR and content companies: What should the broadcasters do? originally appeared on BloggingStocks on Wed, 01 Jul 2009 16:20:00 EST. Please see our terms for use of feeds.

4Kids Entertainment (NYSE: KDE), a producer of children's content that engages distribution and licensing opportunities, has not been a great stock idea. Although shares of the company have perked up as of late, the longer-term trend hasn't been so encouraging. Let's see if the first-quarter numbers might change your mind.

Well, I don't know about your mind, but my mind so far hasn't been changed. Revenues declined by 32%. There was a net loss of 15 cents per diluted share. Now, granted, that was far better than the net loss last year, which calculated out to 48 cents per diluted share. I give the company credit for narrowing the loss, but something tells me that I don't necessarily want to invest hard-earned money in a business that is based on the fickle nature of a very young target audience.

Continue reading 4Kids Entertainment remains risky after Q1 loss

4Kids Entertainment remains risky after Q1 loss originally appeared on BloggingStocks on Tue, 12 May 2009 10:50:00 EST. Please see our terms for use of feeds.

CBS (NYSE: CBS) programmed its Q1 earnings report Thursday after the bell. If the report had been a pilot, it would have been canceled immediately.

Revenues slipped over 13% to around $3.2 billion. CBS said it lost 8 cents per share. Talk about a failure of a quarter. Last year at this time, CBS made 36 cents per share. True, the comparison was a difficult one, since a change in distribution strategy for the international placement of the CSI asset enhanced the previous year's results.

But let's not get hung up on difficult comparisons. CBS simply had a bad three months. A very bad three months indeed. Oh, and I should note that analysts thought CBS might earn 7 cents per share. That seems almost comical at this juncture.

Continue reading CBS sees sales decline and a loss in Q1

CBS sees sales decline and a loss in Q1 originally appeared on BloggingStocks on Fri, 08 May 2009 09:30:00 EST. Please see our terms for use of feeds.

News Corp. (NASDAQ: NWS), a media concern that competes with companies such as Time Warner (NYSE: TWX), Disney (NYSE: DIS), CBS (NYSE: CBS), and General Electric's (NYSE: GE) NBC Universal, issued its Q3 report on Wednesday after the bell. The numbers weren't that great, but you know what? The stock rallied anyhow in the after-hours session, rising over 3%. That's typical of what's been happening: Stocks are going higher even on weak news. Maybe the bears truly are heading back to hibernation.

News Corp. revenues declined by 16%. In terms of earnings, we'll look at operating income since, in this particular case, the numbers involve a lot of gains. This metric dropped 46%. And cash flow from operations for the nine-month period plunged well over 50%.

Continue reading News Corp. reports big declines in operating income and cash flow

News Corp. reports big declines in operating income and cash flow originally appeared on BloggingStocks on Thu, 07 May 2009 09:15:00 EST. Please see our terms for use of feeds.

CBS (NYSE: CBS) reported Q4 earnings after the bell on Wednesday. Revenues declined 8%, and earnings per share from continuing operations on an adjusted basis dropped 39% to $0.34. Let me tell you, the bottom line really beat the analysts. Expectations were set at $0.25 per share. That's a $0.09 beat. Pretty awesome, right?

Well, not to my way of thinking. You see, CBS has read the writing on the wall about its dividend. Due to current economic circumstances, the quarterly payout was reduced to $0.05 per share. Previously, CBS was doling out $0.27 per share.

Continue reading CBS beats expectations, sure, but the dividend has been slashed!

CBS beats expectations, sure, but the dividend has been slashed! originally appeared on BloggingStocks on Thu, 19 Feb 2009 10:30:00 EST. Please see our terms for use of feeds.

Continue reading Whedon's 'Dollhouse' flops; how long will FOX hang on?

Whedon's 'Dollhouse' flops; how long will FOX hang on? originally appeared on BloggingStocks on Tue, 17 Feb 2009 15:36:00 EST. Please see our terms for use of feeds.

Continue reading Will 'American Idol' and 'Lost' burn investors?

Will 'American Idol' and 'Lost' burn investors? originally appeared on BloggingStocks on Thu, 15 Jan 2009 18:00:00 EST. Please see our terms for use of feeds.

Continue reading Has American Idol jumped the shark?

Has American Idol jumped the shark? originally appeared on BloggingStocks on Tue, 13 Jan 2009 18:20:00 EST. Please see our terms for use of feeds.

It's just weeks away -- a potentially big change for the television show that transfixes America. But how many people would watch it if the show's superstar decided to take a hike? That's not just a troubling question for viewers of the show but for investors in the stock of the company that licenses it around the world. What show am I talking about? American Idol. Which star is thinking of leaving? Wait for it -- Simon Cowell. And what stock could take a beating if he leaves? CKX Inc (NASDAQ: CKXE).

Simon Cowell is thinking of leaving American Idol. According to MSNBC, Simon said "I'll make a decision about (whether to stay with the show) next year." Why would Simon leave? He claims it's not personality conflicts but the workload and his belief that the show could keep those demands going "for another 10 years." But if Simon leaves, would the show be as popular? Could the producers find someone else to be the harsh voice of reality?

That's an important question for investors in CKX. Way back in June 2007, CKX accepted a bid to go private in a $1.3 billion LBO led by its founder Robert Sillerman. But on November 4. 2008, that deal fell apart due to tightening credit conditions. This put Sillerman's 19X, which was leading the buyout, on the hook for a $37.5 million termination fee, which it said it would pay for with about 3.3 million shares of CKX common stock then valued at $11.08 per share and $500,000 in cash. The company said it will pay the fee in full within 30 days of the deal's termination date.

Continue reading Would Simon Cowell's departure from American Idol hurt CKX?

Would Simon Cowell's departure from American Idol hurt CKX? originally appeared on BloggingStocks on Fri, 19 Dec 2008 13:30:00 EST. Please see our terms for use of feeds.

CBS Corporation (NYSE: CBS) lost money in the third quarter (to see the data, you can click here to link to a pdf file). The loss was huge. Would you believe the red ink was equal to $18.58 per share from continuing operations? If you're a shareholder, you're probably shuddering at this point. But hold on, we're talking loss from a GAAP point of view. On an adjusted basis, excluding various charges (including the effect of the CNET purchase), CBS took in $0.43 per diluted share from continuing operations. According to my earnings preview, analysts were looking for a number around $0.40 per share. That's more like it. Yet, there's another angle to the CBS story that won't be so reassuring. And that angle has to do with cash flow.

You see, CBS really promotes its dividend. For a dividend to be considered safe and strong, it needs to be backed by free cash flow. Well, during the third quarter, CBS produced no free cash. It used $38 million for its corporate activities. Before anyone panics, management was quick to point out that, for the nine-month period, free cash flow was a positive $1.4 billion. CBS paid out about $524 million in dividends. So, that should allow for some comfort. Still, for a company that likes to base itself on returning value to shareholders, that does give me pause. Yes, it's only one quarter, but we are stuck in an awful economy right now, and the advertising outlook seems pretty challenged going forward. The Wal Disney Corporation's (NYSE: DIS) ABC, General Electric Company's (NYSE: GE) NBC, and News Corp.'s (NYSE: NWS) Fox are all in the same boat. Management does explicitly state in the earnings release that it's going to keep a strong eye on costs. I hope so. I also hope it'll keep a strong eye on the ratings of its television shows and continue to look for programming that can keep the cash coming. CBS has done well during the opening weeks of the new season.

Can CBS' content win the day and justify the stock's current yield? That's the big question. Since CBS' stock sports a yield of over 11%, the market is basically saying that bad things are to come. But, if management can sustain the dividend, then the yield can be considered a huge asset at this point. I'd be willing to give CBS the benefit of the doubt over the long term, but if you're thinking of trading the stock, I'd have a firm exit strategy in mind and use a tight stop. Wall Street has been in a very fickle mood lately, so anything can happen to stock prices at any moment. Executive chairman Sumner Redstone is very confident in the company. I'm not sure how big an endorsement that is, but it's something, at least, right?

Disclosure: I own Disney and GE; positions can change at any time.

CBS put a loss on the Q3 schedule originally appeared on BloggingStocks on Thu, 30 Oct 2008 15:50:00 EST. Please see our terms for use of feeds.

CBS (NYSE: CBS), which competes with Disney's (NYSE: DIS) ABC, News Corp.'s (NYSE: NWS) Fox, and General Electric's (NYSE: GE) NBC, is scheduled to report earnings for the third quarter on Thursday. This is going to be an important one for the broadcaster. Why, you ask? Well, have you checked out the company's stock lately? It's priced in single digits! As of Tuesday's close, CBS was pegged at $8.83 per share. It actually rose over 13% on that day (along with the rest of the euphoric market), so who knows, maybe it'll crack the $10 level at some point.

According to Earnings.com, Wall Street expects $0.40 per share. That's an $0.08 drop compared to the previous year's quarter. Or, we can express it as a 16.7% decrease. What investors will be looking at very carefully is the quality of the cash flow. At this point, CBS is all about the dividend. I alluded to this back in August when I talked about the broadcaster's second-quarter report. If the cash is still coming, then things might be okay. Because at a yield of over 12%, a potential investor has to be careful when considering CBS' shares.

Continue reading Earnings preview: CBS not eyeing growth

Earnings preview: CBS not eyeing growth originally appeared on BloggingStocks on Wed, 29 Oct 2008 10:30:00 EST. Please see our terms for use of feeds.