Some of the biggest US media conglomerates beat earnings expectations yesterday, though Time Warner, Viacom and Comcast all found their TV businesses under scrutiny in a tough advertising market.
Time Warner posted a profit that beat estimates by 4 cents, and Comcast and Viacom both beat expectations by a penny.
But all three were just shy of revenue expectations. Even though they operate a range of businesses outside of TV, investors focused on ad performance because it is a key revenue source for media companies.
“That advertising number is the first thing people look at when they look at the earnings release,” said Matthew Harrigan, an analyst at Wunderlich Securities.
Viacom’s stock got the strongest lift from its results, with shares rising 2.6 percent to $66.41 after touching a new multiyear high earlier in the session.
Time Warner, on the other hand, fell 0.5 percent to $59.48.
Comcast, which unlike the other two companies combines media properties with a cable-television system, benefited more from cable than from its media unit. Comcast shares rose 1.4 percent to $41.86.