Viacom Inc. (NASDAQ:VIAB) reported better-than-expected earnings in the fourth quarter of fiscal 2016. However, the company’s top line missed the Zacks Consensus Estimate.
Adjusted net income from continuing operations in the reported quarter was $273 million, down 56% from $614 million in the prior-year quarter. Adjusted earnings per share of 69 cents beat the Zacks Consensus Estimate of 65 cents but declined 55% year over year.
Total revenue in the quarter was $3,226 million, down 15% year over year. The top line also came in below the Zacks Consensus Estimate of $3,304 million. A strong U.S. dollar hurt the top line. Quarterly adjusted operating income of $538 million plunged 49% year over year.
At the end of the fourth quarter and fiscal 2016, Viacom had $379 million of cash & cash equivalents and $11,896 million of outstanding debt compared with $506 million and $12,267 million, respectively, at the end of fiscal 2015.
Segmental Performance
Media Networks
Quarterly revenues for the Zacks Rank #3 (Hold) company’s media networks segment were $2,483 million, down of 11% year over year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quarterly operating profits came in at $750 million, down 27% year over year. Revenues were adversely impacted by lower affiliate and advertising revenues, partially offset by an increase in ancillary revenues.
Filmed Entertainment
Quarterly revenues declined 24% year over year to $774 million. This segment saw a decrease in theatrical revenues and an increase in home entertainment revenues. The segment reported a loss in the quarter of $137 million, which compared unfavorably with the prior-year quarter profit of $122 million.
Viacom faces tough competition from peers like Time Warner Inc. (NYSE:TWX) , Walt Disney Company (NYSE:DIS) and Discovery Communications (NYSE:DIS) .
VIACOM INC-B Price, Consensus and EPS Surprise
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
TIME WARNER INC (TWX): Free Stock Analysis Report
DISNEY WALT (DIS): Free Stock Analysis Report
DISCOVERY COM-A (DISCA): Free Stock Analysis Report
VIACOM INC-B (VIAB): Free Stock Analysis Report
Original post
Zacks Investment Research