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Viacom Hits 52-Week Low on Poor Film & Advertisement Sales

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Shares of Viacom Inc. (VIAB - Free Report) declined 4.3% yesterday, touching a 52-week low of $36.32 in the last trading session and finally closing at $38.15. Over the last one month, shares of the company have lost more than 32% value.

Earlier, the media giant declared third-quarter fiscal 2015 financial results wherein both the top and the bottom line lagged the Zacks Consensus Estimate. The Film Entertainment segment’s revenues fell a considerable 44% year over year, mainly on account of a 92% drop in Global Theatrical sales and 30% decline in home entertainment business sales.

Lack of significant movie releases coupled with deteriorating advertising revenues owing to soft ratings is constantly affecting Viacom’s revenues. Meanwhile, except for the sole Mission: Impossible – Rogue Nation hit, the company’s movie business has been suffering immensely of late. To aggravate matters, the company failed to launch any hits in the last two years. Moreover, Viacom has nothing substantial slated for release in the coming months. Also, ancillary revenues declined a meaningful 30% year over year.

Additionally, earnings estimate revisions have exhibited a negative trend. Over the past 60 days, the company witnessed negative estimate revisions for both the current year and the third quarter, leading to the Zacks Consensus Estimate moving south by 5.4% to $5.57 and 17.3% to $1.63, respectively.

Meanwhile, Comcast Corp. (CMCSA - Free Report) -owned Universal Pictures has been dominating the 2015 U.S. box office with a 28.4% market share. The significant market hold can be largely attributed to successes like Jurassic World and Furious 7. Meanwhile, The Walt Disney Co’.s (DIS - Free Report) Buena Vista studio owned a 20.2% share in 2015 driven by successful releases like Avengers: Age of Ultron and Inside Out. On the other hand, Time Warner Inc’.s Warner Bros. has been enjoying the third spot this year with a 17.3% market share.

Viacom currently holds a Zacks Rank #5 (Strong Sell).

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