The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Viacom missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share grew significantly.
Gross margins grew, operating margins dropped, net margins expanded.
Viacom booked revenue of $3.31 billion. The 27 analysts polled by S&P Capital IQ wanted to see sales of $3.48 billion on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $3.95 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 $0.91. The 30 earnings estimates compiled by S&P Capital IQ averaged $0.91 per share. GAAP EPS of $0.92 for Q1 were 142% higher than the prior-year quarter's $0.38 per share. (The prior-year quarter included -$0.68 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 46.8%, 210 basis points better than the prior-year quarter. Operating margin was 24.0%, 170 basis points worse than the prior-year quarter. Net margin was 14.2%, 880 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.27 billion. On the bottom line, the average EPS estimate is $0.99.
Next year's average estimate for revenue is $13.99 billion. The average EPS estimate is $4.69.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 134 members out of 146 rating the stock outperform, and 12 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give Viacom a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Viacom is outperform, with an average price target of $57.45.
Is Viacom the right retailer for your portfolio? Learn how to maximize your investment income and ""Secure Your Future With 9 Rock-Solid Dividend Stocks,"" including one above-average retailing powerhouse. Click here for instant access to this free report.
- Add Viacom to My Watchlist.