CBS Quarter in Line

Revenue is a bit light but earnings are solid.
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CBS (CBS) - Get 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."

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.