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CBS, Meredith Extend Ties with Station Affiliation Renewal
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CBS Corp. and Meredith Corp. recently renewed their station affiliation accord for four owned-and-operated stations. These four stations, which cater to around 5.5 million customers, are WGCL in Atlanta, GA; KCTV in Kansas City, MO; WNEM in Flint, MI; and KPHO in Phoenix, AZ.
Apart these four stations, Meredith also operates CBS Corp’s affiliated KMOV in St. Louis, MO; WFSB in Hartford, CT; and WSHM in Springfield, MA that were renewed last year. Meredith’s CBS affiliates have 7% coverage in the U.S. and serve over 8 million customers.
Further, the deal extends the renewal of CBS Corp.’s digital distribution service, which will be accessible by Meredith’s seven operated stations. It will cover the CBS Television Network's digital subscription video on demand as well as CBS All Access and Nielsen-measured live streaming service. Also, the deal includes the distribution through the Hulu live multi-channel digital television service.
We noted that CBS Corp yielded a return of 32.6% in the past one year, notably outperforming the Zacks categorized Broadcasting-Radio and Television industry’s gain of 13.8%.
Moreover, this Zacks Rank #3 (Hold) company expects revenues to increase along with 21% of retransmission and 14% of reverse compensation set for renewal in 2017. Also, management highlighted that retransmission consent and reverse compensation are expected to exceed the $2-billion mark in 2020.
Further, Meredith yielded 42% in the past one year, clearly outperforming the Zacks categorized Publishing-Periodicals industry’s gain of 37.5%.
This Zacks Rank #3 company’s bottom line outpaced the Zacks Consensus Estimate for 12 straight quarters when it reported first-quarter fiscal 2017. Meredith’s strategic investments, along with acquisitions and partnership deals, play a major role in fortifying its media portfolio. Additionally, the company is focused on bolstering advertising revenues, primarily in the digital space and is increasingly concentrating on brand licensing, marketing services and eCommerce.
Coming back to the deal, we believe that it will serve the viewers better by enhancing their experience, alongside improving the companies’ performance. In addition, the deal also highlights Meredith’s access to CBS Corp.’s digital distribution services.
Key Picks
Better-ranked stocks include Gray Television, Inc. (GTN - Free Report) and Grupo Televisa, S.A.B. (TV - Free Report) .
Gray Television, with a long-term earnings growth rate of 6.5% gained 15.3% in the past three months. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Grupo Televisa carries a Zacks Rank #2 (Buy) and has a long-term earnings growth rate of 16.6%.
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CBS, Meredith Extend Ties with Station Affiliation Renewal
CBS Corp. and Meredith Corp. recently renewed their station affiliation accord for four owned-and-operated stations. These four stations, which cater to around 5.5 million customers, are WGCL in Atlanta, GA; KCTV in Kansas City, MO; WNEM in Flint, MI; and KPHO in Phoenix, AZ.
Apart these four stations, Meredith also operates CBS Corp’s affiliated KMOV in St. Louis, MO; WFSB in Hartford, CT; and WSHM in Springfield, MA that were renewed last year. Meredith’s CBS affiliates have 7% coverage in the U.S. and serve over 8 million customers.
Further, the deal extends the renewal of CBS Corp.’s digital distribution service, which will be accessible by Meredith’s seven operated stations. It will cover the CBS Television Network's digital subscription video on demand as well as CBS All Access and Nielsen-measured live streaming service. Also, the deal includes the distribution through the Hulu live multi-channel digital television service.
We noted that CBS Corp yielded a return of 32.6% in the past one year, notably outperforming the Zacks categorized Broadcasting-Radio and Television industry’s gain of 13.8%.
Moreover, this Zacks Rank #3 (Hold) company expects revenues to increase along with 21% of retransmission and 14% of reverse compensation set for renewal in 2017. Also, management highlighted that retransmission consent and reverse compensation are expected to exceed the $2-billion mark in 2020.
Further, Meredith yielded 42% in the past one year, clearly outperforming the Zacks categorized Publishing-Periodicals industry’s gain of 37.5%.
This Zacks Rank #3 company’s bottom line outpaced the Zacks Consensus Estimate for 12 straight quarters when it reported first-quarter fiscal 2017. Meredith’s strategic investments, along with acquisitions and partnership deals, play a major role in fortifying its media portfolio. Additionally, the company is focused on bolstering advertising revenues, primarily in the digital space and is increasingly concentrating on brand licensing, marketing services and eCommerce.
Coming back to the deal, we believe that it will serve the viewers better by enhancing their experience, alongside improving the companies’ performance. In addition, the deal also highlights Meredith’s access to CBS Corp.’s digital distribution services.
Key Picks
Better-ranked stocks include Gray Television, Inc. (GTN - Free Report) and Grupo Televisa, S.A.B. (TV - Free Report) .
Gray Television, with a long-term earnings growth rate of 6.5% gained 15.3% in the past three months. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Grupo Televisa carries a Zacks Rank #2 (Buy) and has a long-term earnings growth rate of 16.6%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>