Viacom (NASDAQ: VIAB) is a well-known name among the American global mass media company, which is primarily focused in cinema and cable television. In terms of revenue, it is recorded as the world’s fifth largest firm for years. Hence, it is a big name in terms of revenues and an established firm. This week’s result announced a 19% drop in year to date revenue. The immediate question in everyone’s mind now is that will the slide continue or a recovery can be expected. Analysts have compiled date and drawn conclusions on what they expect in the fourth quarter earnings. The estimates calculated for the fourth quarter is $3,636 million on the low, and $4,204 million on the high side. But the S&P Capital IQ Consensus is set at $3,888.49 million, and the expected EPS for the quarter stands at a high of $1.78 and a low of $1.63. But according to S&P Capital IQ Consensus it’s expected at $1.78.
Even though in the past, Viacom (NASDAQ: VIAB) has performed better than what the Wall Street’s estimates were, the figures for the current fiscal year will reveal it all.
In terms of analyzing progress for the firm, these four areas are kept under observation.
- Major breakthroughs in Box Office: Transformers: Age of Extinction is the biggest catalyst to stir in successful figures. Last quarter, Viacom (NASDAQ: VIAB) wasn’t able to take advantage of its success, but this quarter that’s expected to change. Transformers earned over $1.087 billion worldwide, which helped lift the franchise with the help of four other films. Investors are expecting outstanding results in the fourth quarter.
- Scatter Sale rise: Television ad revenue rose by 1% in the year for the third quarter, as it seems that buyers preferred to save money and wait for scatter sales. This effected every broadcast network. But Phillippe Dauman, the CEO for Viacom (NASDAQ: VIAB) says he is optimistic regarding the advertising sales, as we enter the next quarter.
- Franchise bets: Viacom (NASDAQ: VIAB) has a deal with director Michael Bay to develop and distribute his latest projects. These include big names like the new Transformers movie along with the Teenage Mutant Ninja Turtle. Dauman is expected to give an update on Viacom (NASDAQ: VIAB)’s upcoming franchise bets.
- The share repurchase effect: Viacom (NASDAQ: VIAB) has plans to repurchase shares worth $7.15 billion. This total is after the buybacks of $850 million at an average price of $85 in the previous quarter. Dauman and his team is still keen on buybacks in the fourth quarter hence investors’ expectations are also high in this regard.
Viacom (NASDAQ: VIAB) is expected to announce their fourth quarter results on November 13th, before the market opens. So a lot of hopes are attached with Viacom (NASDAQ: VIAB) for this last quarter and time will tell if the company lived up to the expectations. The current ventures will pay off in the near future and investors will bet their money safely in to these stocks.