Fool Checkup: Viacom Earnings

Viacom (Nasdaq: VIAB  ) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Viacom missed estimates on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share grew significantly.

Gross margins grew, operating margins dropped, net margins expanded.

Revenue details
Viacom booked revenue of $3.31 billion. The 27 analysts polled by S&P Capital IQ wanted to see sales of $3.48 billion on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $3.95 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.91. The 30 earnings estimates compiled by S&P Capital IQ averaged $0.91 per share. GAAP EPS of $0.92 for Q1 were 142% higher than the prior-year quarter's $0.38 per share. (The prior-year quarter included -$0.68 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 46.8%, 210 basis points better than the prior-year quarter. Operating margin was 24.0%, 170 basis points worse than the prior-year quarter. Net margin was 14.2%, 880 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.27 billion. On the bottom line, the average EPS estimate is $0.99.

Next year's average estimate for revenue is $13.99 billion. The average EPS estimate is $4.69.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 134 members out of 146 rating the stock outperform, and 12 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give Viacom a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Viacom is outperform, with an average price target of $57.45.

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