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CBS Corp. (CBS - Analyst Report) announced third quarter earnings after the bell today, posting in-line with the Zacks Consensus EPS estimate of $0.76. Moreover, revenues were above the Zacks Consensus Estimate of $3.53 billion, by 0.1 billion. 

One of the most interesting items from the announcement regarded the Outdoor Americas division which is supposed to be spun into a standalone REIT IPO in early Q1 2014.  Management announced that half of the division’s revenue would come from fast growth non-advertising revenue.  This is more than the street anticipated.  Moreover, it is a strong indication of the IPO’s growth potential going forward.

Another driver was the renewal of the Time Warner Inc. (TWX - Analyst Report) cable deal, in the early part of the quarter, which restored CBS’s content with the cable company.  The agreement ended an almost month long dispute between the two companies.  And not soon enough for football fans.

According to Leslie Moonves President and Chief Executive Officer, CBS Corporation “Our record third-quarter results—driven by double-digit revenue growth—are the continuation of a phenomenal first half, and provide more clarity on what will be another amazing full year for the CBS Corporation.” “We continue to launch new hits—from Under the Dome and Ray Donovan this summer to the top three new comedies on television this fall. Through our studio, we have an ownership interest in most of these shows, meaning that their success not only boosts our base business, but also our newer revenue streams as well, including very strong growth in retransmission consent fees, reverse compensation, international sales and all the opportunities afforded to us by exploding advances in technology. Plus, we are working toward a new advertising model in which we get paid for the significant, additional viewing that is increasingly taking place after a show first airs.”

In afterhours trading, CBS is down less than 1% on very light volume.  Tomorrow morning Zacks will have a full earnings report covering TV ad growth, mobile news, and the overall impact of the contract negations with TWX.

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