Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
Summary: Viacom reported a drop in earnings due to lower sales at the box office and a compensation payment of $62 million to former CEO, Tom Freston. The recent CBS spinoff also announced that CFO Michael Dolan was leaving and would be replaced by chief administrative officer, Thomas Dooley. Viacom, which owns MTV, Dreamworks and other
entertainment businesses earned $356.8 million, or 50 cents per share, from July to September compared to $423.3 million, or 56 cents per share for the same time last year. However, the company beat estimates of 48 cents a share and saw revenue rise 7% to $2.66 billion. "Considering the short time that Philippe Dauman has been in place as CEO, I am truly impressed with our solid third quarter results," said chairman and controlling sharholder, Sumner Redstone, who dismissed Freston in September because he was unhappy with share prices and the company's performance after leaving parent company CBS earlier in the year.
Related links: Earnings conference call: ViacomQ32006. Additional coverage: Marketwatch. Commentary: Viacom Missed MySpace But Not Interested in Facebook • Has MTV Lost Touch With Reality? • Freston's Firing a Big Step Backwards for Viacom
Potentially Impacted Stocks and ETFs: Viacom (NYSE:VIA), Time Warner (NYSE:TWX), CBS Corp (NYSE:CBS) • Select Sector SPDR Consumer Discretionary (NYSEARCA:XLY)
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