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CBS Quarter in Line

Revenue is a bit light but earnings are solid.

CBS (CBS) - Get CBS Corporation Class B Report beat third-quarter earnings targets but missed Wall Street's revenue estimate.

The New York-based broadcaster made $324 million, or 42 cents a share, from continuing operations for the quarter ended Sept. 30, up from the year-ago $257 million, or 33 cents a share. Revenue inched up to $3.38 billion from $3.37 billion a year earlier.

Analysts surveyed by Thomson Financial were looking for a 40-cent profit on sales of $3.43 billion.

"CBS Corporation is right on track," said Sumner Redstone, executive chairman. "We remain committed to escalating shareholder value as we continue to drive our businesses forward. I am encouraged by the strategic vision Leslie and his team have put forth to capitalize upon the tremendous opportunities unfolding in the digital age."

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Revenue growth at Outdoor and Publishing was offset by a decline at Radio, the shutdown of UPN and lower home entertainment revenues due to the switch from self-distribution in 2005 to third party distribution in 2006.

Third quarter free cash flow was $431.8 million, up 65% from $261.3 million for the same prior-year period, reflecting higher operating results and interest income, and lower interest expense and income tax payments.

For the year, CBS said it expects to deliver low single-digit growth in revenues, mid single-digit growth in operating income and high single-digit growth in earnings per share.