ViacomCBS (VIAC) to Report Q2 Earnings: What's in the Cards?

·4 min read

ViacomCBS VIAC is slated to report second-quarter 2021 results on Aug 5.

The Zacks Consensus Estimate for second-quarter earnings has moved up 2.1% to 96 cents per share over the past 30 days, implying decline of 23.2% from the figure reported in the year-ago quarter.

The consensus mark for revenues is pegged at $6.41 billion, suggesting growth of 2.2% from the figure reported in the year-ago quarter.

In the trailing four quarters, the company’s earnings beat the Zacks Consensus Estimate, the average surprise being 18.27%.

Let’s see how things shaped up prior to this announcement.

ViacomCBS Inc. Price and EPS Surprise

ViacomCBS Inc. Price and EPS Surprise
ViacomCBS Inc. Price and EPS Surprise

ViacomCBS Inc. price-eps-surprise | ViacomCBS Inc. Quote

Factors to Consider

ViacomCBS’ second-quarter results are expected to benefit from the availability of Paramount+ streaming service in the United States at a premium plan of $9.99 per month and an ad-supported base plan for $4.99 per month.

Paramount+ features a content catalog of more than 30,000 episodes, 2,500 movie titles and over 1,000 live sporting events.

On Jun 7, Paramount+ announced that it will significantly expand its content offering this summer, starting with the exclusive premiere of the sci-fi action film Infinite and introduction of more than 1,000 premium movies starting Jun 10. This is expected to have boosted active user growth in the to-be-reported quarter.

Improvement in the ad-spending environment, driven by return of live sports globally is expected to have been a key catalyst in driving ad revenues, which accounted for 36.4% of the company’s top line in the first quarter.

An expanding content catalogue of live sporting events and a solid portfolio of streaming services (both advertising and subscription-based offerings) including CBS All Access, Showtime OTT, Pluto TV, Noggin and BET+ are expected to have bumped up viewership and ad revenues in the second quarter.

On Jun 3, ViacomCBS’ division CBS Sports announced a multi-platform agreement with the Asian Football Confederation (AFC) for Paramount+, to serve as the exclusive home of AFC’s world-class competitions including the AFC Asian Qualifiers – Road to Qatar Final Round, AFC Champions League, AFC Women’s Asian Cup 2022 and AFC Asian Cup China 2023 in the Unites States.

Pluto TV has gained immense popularity with more than 250 live linear channels and thousands of hours of on-demand content. Pluto TV partners with more than 175 content providers including media houses, film and TV studios that actually help it to produce a variety of content.

Pluto TV’s total global monthly active users (MAUs) were 49.5 million, up 64.5% sequentially in the first quarter. This momentum is expected to have continued in the to-be-reported quarter.

However, theatrical revenues of ViacomCBS are expected to have taken a hit in the reported quarter due to the closure or reduction in capacity of movie theaters in response to coronavirus.

Key Q2 Developments

On Apr 5, ViacomCBS’ division ViacomCBS Networks International (VCNI) announced that it will acquire Chilevisión from WarnerMedia. The deal will strengthen and expand VCNI’s presence in the Southern Cone of Latin America by creating an aligned commercial, content and distribution strategy.

What Our Model Suggests

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

ViacomCBS has an Earnings ESP of -2.69% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a Look

Here are a few companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming release.

Avnet, Inc. AVT has an Earnings ESP of +9.82% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arrow Electronics, Inc. ARW has an Earnings ESP of +0.77% and a Zacks Rank #2.

CACI International, Inc. CACI has an Earnings ESP of +6.62% and a Zacks Rank #2.


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