Miller Tabak media analyst David Joyce maintained his “buy” rating and $36 12-month price target on CBS after the broadcaster beat practically all of his first quarter financial estimates.
CBS reported earnings on May 3, with revenue up 2% to $3.7 billion (beating Joyce’s estimate of $3.5 billion) and operating income before depreciation and amortization (OIBDA, a measure of cash flow) flat at $636.5 million (ahead of Joyce’s estimate of $617 million). Adjusted net income for the period was $253.6 million (33 cents per share), in line with Joyce’s estimate.
CBS more than doubled the analyst’s prediction for free cash flow — cash flow after capital expenditures and interest payments are made — at $753 million compared to Joyce’s estimate of $293 million. At the TV unit, revenue was up 2% to $2.6 billion.