CBS's Future After Redstone, Network's Shows Will Be in Focus When the Company Reports -- Earnings Preview

By Joe Flint 

CBS Corp. is scheduled to release its fourth-quarter and full-year earnings after the market closes on Thursday. Here is what you need to know:

EARNINGS FORECAST: CBS is expected to report adjusted per-share earnings of 92 cents, according to analysts polled by Thomson Reuters.

REVENUE FORECAST: CBS is projected to report revenue of $3.8 billion. For the same quarter a year ago, CBS posted revenue of $3.68 billion.

WHAT TO WATCH:

TOUCHDOWN: CBS Chief Executive Leslie Moonves, who also assumed the title of chairman last week, will likely celebrate the network's coverage of Super Bowl 50, which drew almost 112 million viewers and took in as much as $5 million for a 30-second commercial. He may also talk about the new Thursday NFL deal that CBS and NBC struck with the league that will have both carrying five games each. CBS had previously been the exclusive broadcast home for Thursday football. Although the network has fewer games, Mr. Moonves has indicated the package will be better financially for the company.

FAMILY FEUD: Expect Mr. Moonves to sidestep questions about the health of Sumner Redstone, who stepped down last week as chairman of both CBS and Viacom Inc., or what it could mean for the future of CBS. Mr. Redstone still oversees National Amusements Inc., the holding company that has a controlling stake in both media companies. Mr. Redstone is in the midst of an ugly legal battle with a former girlfriend over his competency, which could have implications for his control stakes in CBS and Viacom.

REPORT CARD: The first half of the TV season is over and thanks in part to the Super Bowl, CBS is up in both total viewers and adults 18-49. The good news is its new dramas "Limitless," "Supergirl" and the comedy "Life in Pieces" look promising enough to survive to year two. The bad news is that many of its veteran shows including "Elementary," "Criminal Minds" and "NCIS: Los Angeles" are down as are the network's prestige Sunday dramas "Madam Secretary" and "The Good Wife," which is ending this spring. At pay-TV channel Showtime, the new drama "Billions" is off to a very strong start and has already been renewed for a second season.

CBS is heavily promoting its over-the-top service "CBS All Access," even running an ad for it during the Super Bowl and creating a new version of "Star Trek" that will debut next January. Mr. Moonves even recently suggested the service could also eventually carry content from Showtime and the CW, which CBS co-owns with Warner Bros. However, investors and analysts are still in the dark as to just how many have signed up for "All Access" since its launch about 18 months ago and are eager for the company to say more than it is happy with the subscriber numbers.

FUTURE TRIPPING:

Write to Joe Flint at [e-mail]

(END) Dow Jones Newswires

February 10, 2016 12:53 ET (17:53 GMT)

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