Updated from 8:46 a.m. EST

Buoyed by strong advertising revenues,

CBS

(CBS) - Get Report

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, which

Viacom

(VIA) - Get Report

will buy for $50 billion, reported earnings that came in a penny ahead of expectations.

Its 84%-owned radio and outdoor advertising unit,

Infinity Broadcasting

(INF) - Get Report

, reported earnings in line with expectations.

Shares of CBS were down 1/16 at 64 3/16 in midday Tuesday trading, while shares of Infinity were down 1 3/4, or 5%, to 36 1/4. (CBS closed down 1 9/16, or 2.43%, at 62 11/16. Infinity closed down 1 9/16, or 4.1%, at 36 7/16.)

Analyst Chris Ensley of

Lazard Freres

blamed momentum investors for dragging Infinity's price down in spite of the positive numbers it reported. "They're buying on rumor and selling on news with the upside priced in already," he said. "I've seen this run-up in the days ahead with all the radio companies."

He rates Infinity a buy, his firm's highest rating, and Lazard helped to underwrite the company's initial public offering. He used to rate CBS a buy but currently has no rating because it is trading as a proxy for Viacom and he does not cover that company. Lazard has not done any underwriting for CBS.

For the fourth quarter ended Dec. 31, income from continuing operations at New York-based CBS rose to $19 million, or 3 cents a diluted share, from $3 million, or 0 cents a share, a year earlier. The consensus estimate of analysts polled by

First Call/Thomson Financial

was 2 cents a share.

Revenue rose 24%, to $2.22 billion from $1.79 billion a year ago. Cash flow -- or earnings before interest, taxes, depreciation and amortization, minority interests and equity losses -- rose 85% to $523 million from $282 million a year earlier.

Television segment revenues from the broadcaster of hit shows like

Everybody Loves Raymond

and

Judging Amy

rose 13% to $1.23 billion from $1.08 billion a year earlier, while EBIDTA rose 151% to $163 million from $65 million a year earlier. Those figures exclude the impact of the acquisition of

King World Productions

, which closed on Nov. 15. The syndicater of television shows -- including game shows

Wheel of Fortune

and

Jeopardy!

and talk show

The Oprah Winfrey Show

-- reported revenue of $103 million and EBIDTA of $28 million.

Cable revenues rose 6% to $142 million from $134 million in the fourth quarter of 1998 and EBIDTA rose 121% to $62 million from $28 million, excluding the divestment of two cable networks last year and recovery of a previously written off receivable. The increases reflect operating gains at

TNN

, its country music network, and the elimination of losses in the fourth quarter of 1998 from the divested cable networks.

Losses were incurred at the new media, or Internet, operation. The company attributed the $30 million loss in EBIDTA, from a $1 million loss a year earlier, to aggressive advertising and marketing costs for

iWon.com

, in which CBS holds a majority interest. CBS also has a 32% interest in

MarketWatch.com

(MKTW)

and a 16% interest in

SportsLine.com

(SPLN)

.

"This growth was fueled by our television segment, which enjoyed substantial increases in the value of its advertising time, and by our Infinity subsidiary, which posted double-digit growth in every category," Mel Karmazin, president and chief executive of CBS, said in a statement.

Meanwhile, for the fourth quarter ended Dec. 31, Infinity reported net income that rose to $118 million, or 13 cents a diluted share, from $69 million, or 10 cents a share, a year earlier. The per-share figure was in line with First Call's estimate.

Net revenue rose 20% to $686 million from $573 million a year ago. Operating cash flow rose 21% to $312 million from $257 million in the fourth quarter of 1998. The figures exclude the December acquisition of

Outdoor Systems

, which contributed $73 million in revenue and $38 million in EBIDTA.

The company ascribed revenue growth to strong advertising revenues at the radio stations and outdoor advertising business, as well as the which contributed $103 million in revenue and $28 million in EBIDTA.