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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.