CBS once again proved Wall Street wrong on Thursday, with the company posting better than expected Q3 earnings.
CBS posted earnings per share of $1.15 for the quarter. Analysts had predicted the company would post earnings per share this quarter of $0.98. That represents the highest quarterly diluted EPS in company history.
This is the latest in a long string of financial victories the company has enjoyed under the leadership of chairman and CEO Leslie Moonves.
“CBS is clearly knocking the cover off the ball, including revenue and profit growth across every one of our operating segments,” Moonves said. “Our premium content continues to be the driving force behind our success, starting with the CBS Television Network, which kicked off another terrific season as the number one network, with the number one new drama, ‘Bull,’ and the #1 new comedy, ‘Kevin Can Wait.'”
“[Retransmission] consent and reverse compensation grew 32 percent during the quarter, and where we continue to see rapid growth in our subscription streaming services, CBS All Access and Showtime OTT,” he continued.
Revenues for the third quarter of 2016 increased 4 percent to $3.40 billion from $3.26 billion for the same prior-year period. The growth was led by a 32 percent increase in retransmission revenues and fees from CBS Television Network affiliated stations as well as growth from digital distribution platforms.
Content licensing and distribution revenues increased 6 percent, driven by growth in domestic television licensing sales. Advertising revenues during the third quarter were affected by 10 hours of primetime preemptions for Democratic and Republican conventions and the first Presidential debate as well as competition from the 2016 Summer Olympics.
Operating income for the third quarter of 2016 increased 6 percent to $798 million from $753 million for the same prior-year period, reflecting the higher revenues, which were partially offset by increased investment in programming.