The 10-second takeaway
For the quarter ended Sep. 30 (Q3), CBS missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins grew, net margins grew.
CBS logged revenue of $3.42 billion. The 23 analysts polled by S&P Capital IQ predicted revenue of $3.49 billion on the same basis. GAAP reported sales were 1.6% higher than the prior-year quarter's $3.37 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.65. The 27 earnings estimates compiled by S&P Capital IQ anticipated $0.61 per share. GAAP EPS of $0.60 for Q3 were 20% higher than the prior-year quarter's $0.50 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 46.1%, 10 basis points worse than the prior-year quarter. Operating margin was 22.6%, 170 basis points better than the prior-year quarter. Net margin was 11.4%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.04 billion. On the bottom line, the average EPS estimate is $0.74.
Next year's average estimate for revenue is $14.89 billion. The average EPS estimate is $2.56.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 321 members out of 397 rating the stock outperform, and 76 members rating it underperform. Among 130 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 118 give CBS a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CBS is outperform, with an average price target of $39.85.
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