The 10-second takeaway
For the quarter ended March 31 (Q1), CBS met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
CBS reported revenue of $4.04 billion. The 25 analysts polled by S&P Capital IQ foresaw revenue of $4.02 billion on the same basis. GAAP reported sales were 6.4% higher than the prior-year quarter's $3.80 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 $0.73. The 28 earnings estimates compiled by S&P Capital IQ predicted $0.67 per share. Non-GAAP EPS of $0.73 for Q1 were 38% higher than the prior-year quarter's $0.53 per share. (The prior-year quarter included -$0.05 per share in earnings from discontinued operations.) GAAP EPS of $0.70 for Q1 were 30% higher than the prior-year quarter's $0.54 per share. (The prior-year quarter included -$0.05 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 38.8%, 60 basis points better than the prior-year quarter. Operating margin was 19.8%, 170 basis points better than the prior-year quarter. Net margin was 11.0%, 140 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.50 billion. On the bottom line, the average EPS estimate is $0.72.
Next year's average estimate for revenue is $14.93 billion. The average EPS estimate is $3.04.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 344 members out of 426 rating the stock outperform, and 82 members rating it underperform. Among 155 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 139 give CBS a green thumbs-up, and 16 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 $48.98.
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