CBS (NYSE:CBS) logged a stronger-than-expected 11% jump in second-quarter earnings on Wednesday as the media company benefited from stronger content licensing and distribution revenue.
Shares of CBS ticked up almost 1% following the solid earnings beat.
Continue Reading Below
The company said it earned $472 million, or 76 cents a share, last quarter, compared with a profit of $427 million, or 65 cents a share, a year earlier. Analysts had called for EPS of 72 cents.
Revenue jumped 11% to $3.7 billion, topping the Street’s view of $3.51 billion.
"CBS's remarkable momentum continues to build. This is a company built for long-term success, and I know Les and his team will continue to execute in the quarters and years to come,” CBS Chairman Sumner Redstone said in a statement, referring to CBS CEO Leslie Moonves.
CBS’s revenue growth was highlighted by a 22% jump in content licensing and distribution revenue that was driven by licensing agreements for digital streaming and international syndication.
Ad sales rose 5%, partly due to the later timing of the semifinals of the NCAA March Madness tournament. The company also pointed to an 18% jump in affiliate and subscription revenue thanks in part to a pay-per-view boxing event.
Shares of New York-based CBS gained 0.68% to $53.20 in extended trading on Wednesday, putting them on pace to extend their impressive 39% surge so far this year.
CBS has been embroiled in a battle with Time Warner Cable (NYSE:TWC) over negotiating a new carriage agreement. Earlier this week, CBS had its network briefly blacked out for Time Warner customers, but the two sides have since extended a deadline until Friday evening.
Last week, CBS boosted its stock buyback program by $5.1 billion, giving the company total repurchase authorization of $6 billion.