NEW YORK (TheStreet) --Shares of Viacom Inc. are higher by 1.29% to $71.23 in mid-afternoon trading on Monday, as the entertainment content company comes to the end of its restructuring efforts, which should be completed by the end of March and should result in saving the company $250 million, Variety.com reports. The MTV, Comedy Central, and Nickelodeon operator was at an event organized by Deutsche Bank today, during which CEO Philippe Dauman said as part of the restructuring certain kinds of programing deemed less effective against new content would be eliminated. Some of Viacom's older programing "just doesn't work anymore, especially when you have off-broadcast programing that is on SVOD...We are going to abandon some of that programing as we go forward, and continue to invest in what works and that will help us grow," Dauman said, Variety noted. Separately, TheStreet Ratings team rates VIACOM INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: "We rate VIACOM INC (VIAB) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income." Highlights from the analysis by TheStreet Ratings Team goes as follows: Despite its growing revenue, the company underperformed as compared with the industry average of 7.4%. Since the same quarter one year prior, revenues slightly increased by 4.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share. The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Media industry and the overall market, VIACOM INC's return on equity significantly exceeds that of both the industry average and the S&P 500. VIACOM INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, VIACOM INC increased its bottom line by earning $5.45 versus $4.90 in the prior year. This year, the market expects an improvement in earnings ($11.66 versus $5.45). The gross profit margin for VIACOM INC is rather high; currently it is at 51.47%. Regardless of VIAB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VIAB's net profit margin of 14.95% compares favorably to the industry average. VIAB has underperformed the S&P 500 Index, declining 19.28% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings. You can view the full analysis from the report here: VIAB Ratings Report
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