3 Things to Watch When CBS Reports Q2 Earnings Wednesday

CBS Corporation (CBS) is set to report second quarter financial results after the markets close on Wednesday, August, 5th. Analysts expect earnings per share of $0.72 on sales of $3.21 billion, according to Thomson Reuters estimates. Morningstar analyst Neil Macker will be watching revenue from the CBS television network. During first quarter, revenue in the division fell almost 2 percent year-over-year and Macker expects sales to decline again during second quarter. ‘On the entertainment side, we’ll be watching for the uptake rate in CBS’s streaming platform CBS All Access,’ he said. ‘We want to know where viewers are coming from and how the company will viewership data to cancel or renew various shows.’ As for CBS’s cable division, which includes popular network Showtime, the company took a page out of HBO’s playbook, which is owned by Time Warner (TWX), by allowing Showtime to exist as a standalone web property, which debuted in July. ‘For the stock, this is another way for the company to expand the viewership of Showtime,’ Macker said. ‘Unlike HBO, Showtime is a U.S. only platform, [so offering the channel online] allows for exposure internationally.’ Macker will also be looking for details on the Floyd Mayweather-Manny Pacquiao fight, which brought in $400 million in revenue to Showtime and HBO, which partnered on the program.