Viacom shares rebound on Thursday, quarterly revenue falls short of expectations as advertising sales disappoint

August 10, 2018 10:07 am

Viacom Inc’s (VIA) fiscal third-quarter revenue, reported on Thursday, missed a consensus of estimates due to weakness in advertising sales, while, additionally, the company collected lower fees from on-line distributors and cable TV operators.

On the other hand, adjusted quarterly profit topped market expectations, sending Viacom’s shares up by over 5%.

Viacom shares closed higher for the fourth time in the past seven trading sessions on NASDAQ on Thursday. It has also been the sharpest daily surge since January 12th. The stock went up 5.37% ($1.80) to $35.30, after touching an intraday high at $36.35, or a price level not seen since April 26th ($37.35).

Shares of Viacom Inc have risen 1.15% so far in 2018, following a 9.35% drop in 2017.

Viacom’s total revenue shrank to $3.24 billion during the third quarter ended on June 30th from $3.36 billion in the year-ago period. In comparison, analysts on average had anticipated $3.26 billion in revenue.

Global affiliate revenue went down 3% year-on-year to $1.15 billion during the past quarter, while falling short of estimates of $1.16 billion, according to data by analytics firm Factset.

At the same time, domestic advertising revenue dropped 3% year-on-year to $922 million during the latest quarter.

The owner of MTV, Paramount Pictures and Comedy Central said that net income attributable to shareholders went down to $522 million ($1.29 per share) during the quarter ended on June 30th from $683 million ($1.70 per share) during the same period a year ago.

On the other hand, earnings per share, excluding special items, were reported at $1.18 during the fiscal third quarter, which outstripped the median analyst estimate pointing to earnings of $1.07 per share.

According to CNN Money, the 21 analysts, offering 12-month forecasts regarding Viacom Inc’s stock price, have a median target of $35.00, with a high estimate of $46.00 and a low estimate of $25.00. The median estimate represents a 0.85% downside compared to the closing price of $35.30 on August 9th.

The same media also reported that 18 out of 28 surveyed investment analysts had rated United Air’s stock as “Hold”, while 8 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Viacom stock are presented as follows:

R1 – $35.57
R2 – $35.84
R3 (Range Resistance – Sell) – $36.11
R4 (Long Breakout) – $36.92
R5 (Breakout Target 1) – $37.87
R6 (Breakout Target 2) – $38.42

S1 – $35.03
S2 – $34.76
S3 (Range Support – Buy) – $34.49
S4 (Short Breakout) – $33.68
S5 (Breakout Target 1) – $32.73
S6 (Breakout Target 2) – $32.18

By using the traditional method of calculation, the weekly levels of importance for Viacom Inc (VIA) are presented as follows:

Central Pivot Point – $33.79
R1 – $34.63
R2 – $35.61
R3 – $36.45
R4 – $37.29

S1 – $32.81
S2 – $31.97
S3 – $30.99
S4 – $30.01

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