Viacom Hits 52-Week High on Earnings
(Viacom earnings article updated with information on the company's quarterly cash dividend and its new 52-week high share price.)
NEW YORK (
) --
Viacom
(VIA) - Get Report
shares hit a 52-week high of $45.11 today after the company reported higher-than-expected adjusted earnings.
The company also announced a quarterly cash dividend of 15 cents per share on its common stock, payable on Dec. 30 to stockholders of record on Nov. 30.
Viacom stock is up about 4% and more than 71,000 shares have traded hands today compared to the stock's average 3-month volume of about 42,000.
The media company reported adjusted net earnings from continuing operations of $461 million, or 75 cents a share, up 7% from $432 million, or 71 cents a share, the year before. Adjusted earnings beat analyst estimates of 69 cents a share.
For the quarter ended September 30, the company saw net earnings fall 59.2% to $189 million, or 31 cents per diluted share, compared with earnings of $463 million, or 76 cents per diluted share, in the same period a year ago.
Net earnings exclude operations at the Rock Band music video game developer Harmonix, which Viacom announced it plans to sell.
Revenue rose 5% to $3.33 billion from $3.17 billion during the quarter as the company saw solid gains at its media networks and filmed entertainment segment.
Revenue from its media networks was up 8% to $2.13 billion from $1.98 billion due to a 7% growth in worldwide advertising revenue and a 10% increase in worldwide affiliate revenue.
"Many of our cable networks today are achieving new ratings highs and producing hit shows that feed the cultural dialogue in the U.S. and abroad," president and CEO Philippe Dauman said. "This creative success coupled with the improving economy has fueled our advertising revenues, which were up 8% in the U.S. this quarter, our third consecutive quarter of sequential improvement."
Filmed entertainment revenue grew 1% to $1.23 billion from $1.22 billion driven by an 18% increase in television license fees and a 3% improvement in theatrical revenue. Worldwide home entertainment revenue fell 13%, primarily due to fewer releases.
"Our motion picture business continues on its trajectory of controlling overhead expenses as it pursues a film strategy focused on franchises and brands," Dauman said. "The studio is off to a great start in fiscal 2011 with the box office success of
Jackass 3D
and
Paranormal Activity 2
."
Viacom changed its fiscal year end to September 30, as a result, its fiscal year 2010 includes the nine-month period of January 1 through September 30.
For the nine months ended September 30, net earnings fell 6.9% to $854 million, or $1.40 a share, compared with earnings of $917 million, or $1.51 a share, in the comparable period a year ago.
Its adjusted diluted earnings from continuing operations increased 20% to $1.15 billion or $1.88 a share compared with $953 million or $1.57 a share.
Revenue rose 1% to $9.34 billion from $9.24 billion. Growth in affiliate and advertising revenue was partially offset by a drop in the filmed entertainment segment due primarily to fewer home entertainment releases. Viacom released five titles in fiscal 2010 versus 12 in the year prior.
--Written by Theresa McCabe in Boston.
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