Wednesday, April 12, 2017
Report: CBS, Fox Have Best Long-Term Financial Position
According to FierceCable.com, the report, titled “U.S. Media: Why Is This Quarter Different From Others?,” noted that the viewership trends for media companies in the first quarter of 2017 will historically be seen as some of the weakest numbers ever. But the media sector was still “a strong out-performer in the first 100 days of the year,” and MoffettNathanson’s research team raised its EPS estimates for Viacom, 21st Century Fox and Time Warner.
“Despite this overwhelmingly negative quarterly data point, sentiment here, as measured by stock performance, remains positive driven by a combination of external factors like tax reform, regulatory change, potential M&A and the continuing roll-out of virtual MVPDs,” the report stated.
MoffettNathanson’s EPS estimates for CBS, AMC Networks and Netflix remained as is, and were lowered for Disney, Scripps Networks and Discovery.
The firm’s research indicates that CBS and Fox will likely grow EPS by double digits in the coming years, partly due to the companies’ varied but well-placed assets, such as essential news and sports coverage.
“Those networks are often the same programmers who find themselves as anchor tenants on every virtual MVPD offering,” the report stated.
Posted 3:24:00 AM