CBS’ earnings winning streak continued on Thursday, with the company once again beating Wall Street expectations.
CBS reported earnings per share of $0.92 on $3.29 billion in revenue. Analysts had previously estimated that the company would post earnings per share of $0.86.
Revenues for the second quarter of 2016 increased 2 perecent from the same prior-year period, even though the prior year included two significant events which did not recur in 2016: Showtime’s distribution of the Floyd Mayweather/Manny Pacquiao superfight, and the broadcast of the NCAA Division I Men’s Basketball Championship finals.
Net earnings of $423 million for the second quarter of 2016 rose 27 percent from $332 million for the same quarter in 2015, driven by the higher operating income, and increased 16 percent from adjusted net earnings of $365 million for the second quarter of 2015.
“CBS turned in another terrific quarter, on the way to another outstanding year, as we continue to take advantage of all the growth catalysts before us,” Leslie Moonves, chairman and CEO of CBS, said.”Our base business is very healthy, including our strongest upfront selling season in years, which will benefit us beginning in late September when the new higher pricing takes effect.”
Moonves claimed that streaming services CBS All Access and Showtime OTT have exceeded expectations, and credited the 16 percent rise in the company’s content licensing business to the recent international deal involving the “Star Trek” franchise library.
CBS has beaten expectations repeatedly over the last several quarters. Back in May when Q1 results were announced, revenues for 2016 increased 10 percent compared to the same prior-year period. Advertising revenues grew 31 percent, driven by the CBS Television Network’s broadcast of Super Bowl 50 and additional NFL games, as well as a 12 percent increase in underlying network advertising.
In Q4 of 2015, the company achieved $3.9 billion in revenue, beating expectations of $3.79 billion for the best quarter in company history.