LOS ANGELES (AP) - Broadcaster CBS Corp. is expected to post second-quarter net income on Tuesday that is double the level of a year ago as the advertising market improves and the company continues to cut deals to sell its older content to online distributors like Netflix and Amazon.
WHAT TO WATCH FOR: What the company says about online streaming deals, like the one it signed in February to allow Netflix to stream to its subscribers older CBS shows such as "Medium," ''Fraser," and "Cheers." Financial terms of the two-year deal had not been released but earnings results may reflect the benefits.
Meanwhile, advertising trends will continue to be in focus for the operator of a broadcast network and the owner of TV and radio stations around the country. Nearly two-thirds of its revenue is tied to advertising.
Analyst Doug Creutz of Cowen Co. expects national broadcast advertising to be up 10 percent compared to a year ago. He expects local TV ad growth of 4 percent, radio ad growth of 4 percent, and outdoor billboard ad growth of 7 percent.
WHY IT MATTERS: CBS is the top-ranked broadcaster with prime-time shows such as "Big Brother" and "The Big Bang Theory." The health of advertising on those shows demonstrates how much companies are willing to invest in consumer spending and is a reflection of the overall economy.
WHAT'S monster beats EXPECTED: Analysts polled by FactSet expect, on average, adjusted earnings of 45 cents per share, up from 25 cents per share a year ago. Net income is seen at $308.3 million, from $150.1 million a year ago. Revenue is seen at $3.55 billion, up from $3.33 billion a year ago.
News For You
Mama June Sets Up Trust Fund monster beats outlet For Honey Boo Boo Daughters Access Hollywood - Mon, Jan 7, 2013 Honey Boo Boo is going to be just fine financially when she gets older, thanks to wise financial planning from Mama June. The reality TV mother has revealed she siphons the majority of the family's "Here Comes Honey Boo Boo" earnings into trust funds More »
2013 May Be the Year Employees Say 'I Quit!' CNBC - 4 hours ago The steady drumbeat of "you're just lucky to have a job" that played through the recession is finally starting to fade and employees may be getting ready to say, "I quit!" and bolt . More »
Giant squid filmed in Pacific depths: Japan scientists AFP News - 15 hours ago Scientists and broadcasters said Monday they have captured footage of an elusive giant squid roaming the depths of the Pacific Ocean, showing it in its natural habitat for the first time ever.
21st year being employed by the monster beats