Upcoming AWS Coverage on Walt Disney Co. Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 16, 2016 / Active Wall St. announces its post-earnings coverage on Viacom, Inc. (NASDAQ: VIAB). The company released its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on November 09, 2016. The New York-based company's quarterly adjusted diluted EPS from continuing operations decline on a y-o-y basis; however it outperformed market consensus estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Viacom's competitors within the Entertainment - Diversified space, The Walt Disney Co. (NYSE: DIS), reported on November 10, 2016, earnings for its fourth quarter and fiscal year ended October 1, 2016. AWS will be initiating a research report on Walt Disney in the coming days.

Today, AWS is promoting its earnings coverage on VIAB; touching on DIS. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=VIAB

http://www.activewallst.com/registration-3/?symbol=DIS

Earnings Reviewed

During Q4 FY16, Viacom's revenue declined 15% to $3.23 billion from $3.79 billion recorded at the end of Q4 FY15. Total revenue for the reported quarter also missed market expectations of $3.30 billion. In Q4 FY16, domestic and worldwide affiliate revenues decreased 19% y-o-y and 16% y-o-y, respectively, reflecting significantly higher revenues from Subscription Video on Demand (SVOD) arrangements in the prior year's quarter.

The media major reported GAAP net earnings from continuing operations attributed to Viacom of $252 million, or $0.63 per share, in Q4 FY16 compared to $884 million, or $2.21 per share, in the year ago quarter. In Q4 FY16, non-GAAP earnings from continuing operations attributed to Viacom came in at $273 million, or $0.69 per diluted share, lower than the $614 million, or $1.54 per diluted share, reported in Q4 FY15. However, the company's earnings per share beat market estimates of $0.65 per diluted share.

In FY16, the company's revenue came in at $12.49 billion, down 6% from $13.27 billion in the year ago period. Furthermore, GAAP net earnings from continuing operations attributed to Viacom for FY16 stood at $1.44 billion, or $3.61 per diluted share, compared to $1.92 billion, or $4.73 per diluted share, in FY15. Additionally, non-GAAP earnings from continuing operations attributed to Viacom declined to $1.47 billion, or $3.68 per share, in FY16 from $2.21 billion, or $5.44 per share in FY15.

Operating Metrics

For the three months ended on September 30, 2016, the company posted GAAP operating income of $332 million compared to $1.06 billion in the prior year's quarter. The company's non-GAAP adjusted operating income for Q4 FY16 came in at $538 million versus $1.06 billion in Q4 FY15. Additionally, the company's reported operating income reflected the restructuring costs related to executive severance incurred during Q4 FY16.

Segment Performance

During Q4 FY16, Viacom' Media Networks segment revenue was $2.48 billion, down 11% y-o-y from $2.79 billion in Q4 FY15, primarily a result of declines in affiliate and advertising revenues, which was partially offset by higher ancillary revenues. The segment's operating income for Q4 FY16 came in at $750 million versus $1.02 billion in prior year's quarter. During the quarter, operating income declined due to fall in quarterly revenues.

The company's Filmed Entertainment segment contributed $774 million to revenue during Q4 FY16, down 24% from $1.03 billion in the last year's comparable period. In the reported period, theatrical revenues declined 55% to $203 million, while licensing revenues came in at $326 million, and home entertainment revenues increased 23% to $199 million. The segment reported operating loss of $137 million in Q4 FY16 compared to operating income of $122 million in the year ago quarter.

Balance Sheet

As of September 30, 2016, the company had cash and cash equivalents balance of $379 million compared to $506 billion at the close of books on September 30, 2015. The company recorded total debt outstanding of $11.91 billion as on September 30, 2015, compared to $12.29 billion at September 30, 2015.

Dividend and Share Repurchases

In a separate press release on October 31, 2016, Viacom's Board of Directors declared a cash dividend of $0.20 per share on both its Class A and Class B common stock. The dividend is payable on January 03, 2017, to stockholders of record at the close of business on December 15, 2016.

Stock Performance

On Tuesday, November 15, 2016, Viacom Class B shares were slightly down 0.64%, finishing the day at $38.61 with volume of 2.87 million shares exchanging hands by the close of the trading session. For the last month, the stock has gained 6.98%. The stock is trading at a PE ratio of 7.45 and has a dividend yield of 2.07%.

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SOURCE: Active Wall Street