Earnings Preview: Viacom

| About: Viacom Inc. (VIA)

Viacom (NYSE:VIA) is expected to report Q3 earnings before the market open on Tuesday, November 4 with a conference call scheduled for 8:30 am ET.


Analysts are looking for a profit of 57c on revenue of $3.3B. The consensus range is 52c-61c for EPS, and revenue of $3.14B-$3.59B, according to First Call. Viacom hasn't been involved in many deals during the quarter, but Chairman Sumner Redstone's holding company, National Amusement's, divested a partial stake in the company. It's valued at $600M and will leave Redstone and NA a controlling interest in both Viacom and CBS (NYSE:CBS). Viacom CEO Philippe Dauman says the company is focused on growing its business and not on acquisitions. Growth is expected to be fueled by September's release of "The Beatles: Rock Band" video game, as well as by strong initial sales of DVD and Blu-ray units for Paramount's "Transformers: Revenge of the Fallen." The slump in the ad market is expected to hurt revenue, but there is also expected to be a slight improvement in earnings.

Analyst Views

Cowen analyst Doug Creutz said he expects "The Beatles" game, as well as favorable exchange rates, to give a boost to earnings. Shares rose 24% during the quarter.