CBS
This morning, CBS once again debunked the lethargic-twin tag. Earnings per diluted share from continuing operations climbed 27% higher to $0.42, with free cash flow soaring 65% higher to hit $432 million. The top line clocked in essentially flat at $3.4 billion.
Sticking to "continuing operations" at CBS isn't some parlor trick, either. The company did sell off its Paramount Parks amusement park business to Cedar Fair
Without the parks, CBS posted earnings of $1.55 a share on $14.1 billion in revenue last year. For all of 2006, CBS is looking to grow its top line in the low single digits. Its operating income will improve with mid-single-digit growth, and its earnings per share will increase in the high single digits. In other words, CBS may not be much of a sizzler in terms of revenue growth, but its margin expansion is a trait that any investor can come to appreciate. It also positions the company to narrowly beat out Wall Street's estimates, which call for CBS to earn $1.65 per share this year.
If that doesn't move you, consider that CBS has raised its dividend three times since it started trading as a standalone company in January. And if the CW network joint venture with Time Warner
OK, so CBS will never be high-octane growth material. Its best-performing division this year has actually been its outdoor billboard subsidiary. The point, however, is that the pieces fit at CBS. This tortoise can still beat out the hare with the MTV haircut.
Cedar Fair is an Income Investor recommendation, and Time Warner is a longtime pick of the Stock Advisor newsletter service. Get your free Stock Advisor special report today.
Longtime Fool contributor Rick Munarriz doesn't watch as much CBS as he used to -- the new Survivor and umpteenth CSI spin-off just aren't cutting it with him -- but he's still watching other shows on the network. He does not own shares in any of the companies mentioned in this story. He is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.The Fool has a disclosure policy.