CBS’s Q1 (CBS) wasn’t enough to impress Goldman Sachs, which reiterated its SELL rating. Goldman says the Q1 upside was attributable to “intermittent factors like strike/pilot cost savings, timing shifts, and a modest syndication renewal.” The key metrics in the network’s core businesses were less impressive:
…a deceleration of same station radio revenue to -9% yoy ex-WON from -7% in 4Q2007 and TV ad revenue declining yoy ex-political and one-times vs flat during 4Q2007. Our full year 2008 EPS estimate is unchanged despite 1Q2008 upside as we are lowering our estimates for the rest of 2008.
These changes reflect deteriorating ad revenue, a lowering of Showtime affiliate revenue growth expectations, and negative cost comps during 2Q2008 due to the NCAA timing shift and delayed TV production.
Business Insider Emails & Alerts
Site highlights each day to your inbox.