Viacom Posts Less Than Ideal ER to Close Out an Otherwise Disappointing 2016 (12-Year Chart Included)
Zacks– Viacom Inc. VIAB reported better-than-expected earnings in the fourth quarter of fiscal 2016. 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. 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.
Quarterly revenues for the company’s media networks segment were $2,483 million, down of 11% year over year.
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.
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. TWX, Walt Disney Company DIS and Discovery Communications DISCA.
Today’s earnings beat is welcome news considering the key metrics Viacom has posted after the last year. Viacom’s 1-Year averages are: Price -25%, Earnings -17%, Dividends -50%, & Total Returns have fallen 22%.