Why ViacomCBS Shares Crashed Today
Shares of ViacomCBS (NASDAQ: VIAC) (NASDAQ: VIACA) fell as much as 18.4% on Thursday morning, hamstrung by a disappointing fourth-quarter earnings report. By 12:20 p.m., EST, the company's Class A shares were trading 14.4% lower while the Class B ticker showed a drop of 16.2%.
The media conglomerate (formed on Dec. 4, 2019, when CBS and Viacom reunited in a $12 billion merger after 14 years apart) posted $0.97 of adjusted earnings per share on revenues of $6.87 billion. The analyst community had been looking for earnings near $1.44 per share and sales in the neighborhood of $7.36 billion. The weakness was broadly distributed across nearly all ViacomCBS' operating divisions, from a 1% year-over-year decline in publishing to a 13% top-line drop in the theatrical content segment. The sole outlier was the TV affiliate group, where sales rose by 1%.
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Source Fool.com
