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When corporate earnings reports come in clusters there is often a macro tone about industry that echoes in the details like a PR reps list of talking points.  In Viacom’s third quarter earnings there were references to “financial discipline” and “renewed optimism.”  There were hints of a cautious recovery in advertising revenue. It was the same tone taken by other media companies.  On point and consistent, the message was clear: careful cost management is carrying the load while the broader market is stabilizing.

Overall, Viacom reported consolidated revenues of $3.3 billion in the third quarter, down 3% year over year. Operating income climbed 14% to $784m.  Net Adjusted EPS was 69 cents a share.  Analysts had expected 57 cents on comparable revenue (Thomson Reuters).

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Every company that struggles inevitably reaches a stage in its life when managers introspectively ask: what kind of company are we?   Yahoo in the Carol Bartz era decided it’s a media company. The company wants to be at the center of people’s online lives.

For the last two quarters Yahoo has trimmed costs and refocused to try and deliver that experience.  The end is not yet within reach,  but an apparently stabilizing ad market seems to be helping the cause.

Tuesday, Yahoo reported third quarter earnings up more than three fold over the same period last year.  On revenue of $1.58b (down 12% year over year), Yahoo earned $186.1m or 13 cents a share.   

The third consecutive double digit revenue decline was expected.  The extent of earnings growth wasn’t. 

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There comes a point when calling each successive performance a record starts to get a little ridiculous.  Apple crossed that threshold a long time ago but the fiscal rocket ship flying out of Cupertino isn’t showing any signs of slowing down either.   Even in spite of lofty expectations and market acceptance of Apple’s generally conservative guidance, Apple yet again flew by the benchmarks laid down to measure its performance.

Monday,  Apple’s reported revenue for the September quarter up 25% year over year to $9.87b (the company’s second best total on record).  Profits surged 47%.

For the fourth quarter, Apple earned $1.67b, or $1.82 a share, compared to $1.14 billion, or $1.26 a share, in the same period a year ago. Click to Read More

The New York Times Co. is set to announce quarterly earnings later this week.  Monday, bad news came early and by surprise.

With a need for greater cost reductions, the Times announced a plan to cut 100 newsroom jobs (8% of total) by year end.  This on top of budget cuts and a 5% employee pay cut already in place.

The Times is approaching the process with a buyout offer.  Employees will receive detailed information packets and have forty five days to decide whether or not to apply.  The buyouts are expected to offer between two and three weeks of salary per year of employment. If there aren’t enough volunteers, the company will implement layoffs to reach the quota.

Earlier this year, Times executives said they didn’t anticipate further newsroom cuts in 2009.  That they changed their minds isn’t surprising given the current ad market and the struggles of the print industry.  Newspapers are fighting an increasingly competitive online global arena and it’s clear there is no easy answer for how to succeed.   There’s so much information beamed at audiences.  To stand out from the volume (below cost and consistently) is a difficult task.  

What is odd about the Times’ news is the timing. Delivering bad news days before earnings…  the foreshadowing doesn’t look good.

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Sony and Nintendo have generally been moving in different directions, one finding success while the other floundered and restructured.   Heading into the current quarter, with consumer spending weak and a strong Yen threatening margins, there were hints that might be changing (at least for the very near term).

Earnings results in, it has.  Both Sony and Nintendo reported Thursday and both struggled. 

At Nintendo, revenue fell 40% to 253b Yen.  Earnings plunged 61%.     Unit sales of Nintendo’s otherwise infallible Wii fell 57% globally compared to the same period last year. 

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THQ is a company still at work turning itself around but the waypoints along the trail show its clearly making progress and moving in the right direction.   A day after winning an arbitration ruling over Jakks Pacific, the Agoura Hills game developer reported a record setting first quarter.

For the three months ended June 30th, revenue soared 77% to $243.5m.   Net income was $6.4m, or 9 cents a share, compared to a loss of $27.2m, or 41 cents a share, last year.  Less one time charges for restructuring and stock compensation, THQ earned $6.9m, or 10 cents a share (compared to a loss of 38 cents last year).

Analysts were expecting a loss of 8 cents a share on revenue of $203.5.

The consensus-topping result directly contrasts weak earnings at some rivals and also appears to temper questions about the interactive gaming industry’s current health.    In this climate, the message seems to be: consumers are buying but they’re buying selectively.  Quality content is essential. 

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Tuesday, Viacom delivered some good news. The company said its premium movie channel joint venture, Epix (developed jointly with Lionsgate and MGM), has signed a carrier deal with Verizon.  Viacom also said it was “very pleased” with advance bidding (called “up fronts”) for commercial time on its cable properties in the upcoming TV season.  The ad sector, CEO Philippe Dauman suggested, is showing signs of recovery.  What was less positive, however, was Viacom’s performance in the quarter ended June 30th.

Adjusted earnings (earnings less severance charges of 3 cents per share) came in at 49 cents a share for the second quarter, the company reported.   Down 23% year over year, that was just good enough to beat analyst’s consensus expectations of 48 cents (Thomson Reuters) but revenue numbers missed. 

Analysts projected revenue of $3.5b.  Viacom totaled up $3.3b in revenue for Q2, a 14% drop over the same period last year.

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