Why Viacom, Inc. Shares Are Tumbling Today
Shares of Viacom (NASDAQ: VIA) (NASDAQ: VIAB) are plunging today following the release of the media conglomerate's third-quarter report. The non-voting Class B stock dropped as far as 13.7% before bouncing back to an 11% loss as of 1:30 p.m. EDT. Voting stock under the VIA ticker fell 11.7% at worst and recovered to a 9.5% drop later.
Viacom's third-quarter report showed 11% year-over-year earnings growth on 8% higher revenue, topping analyst projections on both of these key metrics. But the strong results were largely based on the third-quarter release of another blockbuster movie in the Transformers series, which drove sales 36% higher in the filmed entertainment segment.
Meanwhile, revenue ticked just 2% higher in the much larger media networks division. Advertising sales fell 2% in the domestic market, leaving all the TV-related growth in the hands of international operations.
Source: Fool.com
