What Jim Cramer Got Wrong With ViacomCBS
We got earnings from ViacomCBS this morning.
The company posted better than expected profit and sales for the second quarter. However, advertising revenue was hurt by the coronavirus pandemic.
ViacomCBS reported that it had $478 million, or 77 cents a share, in the quarter. This is down from $971 million, or $1.57 a share in the same period last year.
Adjusted earnings per share came out at $1.25, which is ahead of the expectations for 95 cents a share that FactSet had been expecting.
Revenue was down 12% to $6.275 billion from $7.143 billion, which was ahead of the FactSet consensus of $6.181 billion.
CEO Bob Bakish said, "Despite the impact of COVID-19 on revenue in the quarter, we're successfully managing through the effects of the pandemic, reaffirming the strength of our combined operations."
"Our results underscored our strong progress delivering on our value-creation initiatives, including integration cost synergies, expanded and new distribution agreements, as well as the rapid acceleration of our streaming business, where we achieved record users and revenue in free and pay while building toward the relaunch of our diversified super service," he continued.
Jim Cramer, who held the stock as part of his Action Alerts PLUS charitable portfolio, said he got it wrong when his club moved to sell ViacomCBS. "I didn't see the hope," Cramer said.