Viacom’s stock tumbles as CEO forecasts revenue decline

Investing.com – Viacom Inc ‘s (NASDAQ:VIA) shares slipped on Friday, with investors looking past the company’s sold earnings report released after the closing bell on Thursday and focusing on management’s disappointing guidance on its quarterly conference call.

Viacom’s third quarter revenue came in at $3.36 billion, above the $3.30 billion analysts were expecting as theatrical revenue jumped 189% versus the comparable period.

Third quarter EPS came in at $1.69, up from $1.09 in the third quarter of 2016. Adjusted EPS was $1.17, topping analysts expectations for $1.05.

Shares were indicated up 4% during Thursday’s aftermarket, but instead of ascending on Friday the collapsed after Viacom Chief Executive Bob Bakish said in a conference call that Viacom’s domestic advertising revenue declines would not improve in the fourth quarter. Fourth-quarter ad revenue should decline by 2%, according to the company’s forecast.

Viacom set a new 52-week low of $30.26 during Friday’s session.