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Unlike rivals NBC (part of GE), ABC (part of Disney), or Fox (part of News Corp), TV Network CBS lacks the insurance and financial cover that comes from being part of a larger, more diversified conglomerate.   As a standalone network, nearly two thirds of the company’s revenues come from advertising.

This morning CBS reported their earnings.  Despite the exposure to a fluctuating ad industry, and despite challenges levied by the writers’ strike, the numbers proved mostly positive.   Total quarterly revenues were up 14% to $3.65 billion during the first quarter.   Overall, earnings came in at $244.3m or 36cents per share, a positive gain over 28cents per share earned during the same period last year.  On an adjusted basis, the EPS were 40 cents.

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Nintendo dominated March gaming sales in the US retail market.  According to NPD numbers, they had the best selling console (the Wii) , the best selling portable (the DS) and even the months top selling software title.  Given that across the board strength, and following months of industry leading sales, it’s no surprise, the financials for the past few months were looking good too.  The question some are asking is: can it keep up and what’s next.

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Adding to what has already been a crowded and busy earnings week, Microsoft announced their 3rd quarter results to the waiting market on Thursday.  In most categories, the results were sufficiently positive to meet or exceed expectations.  Guidance for the quarter ending in June was mixed.

Net income for Q3 came in at $4.4b or 47 cents s share on revenue of $14.45 billion.  Last year, for the same period, Microsoft earned 50 cents a share but that number was inflated thanks to onetime gains resulting from coupon programs that were aimed at addressing concerns caused by Vista and Office 2007 shipping delays.  Taking into account the onetime benefits, the year to year results were very similar.  

For the current quarter, the consensus expectation among analysts was earnings of 44cents a share on revenue of $14.5billion.  The actual was enough to beat between one forecast and fall just short on the other.

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Apple and CFO Peter Oppenheimer have a history of being conservative with their guidance.  Listen to a conference call, or read a transcript and you’ll hear repeated remarks about forecasts the company can “confidently meet.”  It’s like a lawyer that won’t ask a question in court without first knowing the answer; similarly Apple seems incapable of making a projection without being sure it will come true.

The history tracks back quarter after quarter.  In summer 2007, when Apple issued third quarter guidance, they forecast dramatically decreased margins and profits as a consequence of a then ambiguous product launch.  It was going to be costly, they said.  Earnings as a result, they told analysts, could be as low as 65cents a share; well below the trend line.  When the actual numbers came in Apple reported  $1.01/share. Last quarter, the first of their fiscal 2008 was more of the same.  Conservative guidance from Q4 ’07 was trumped with record results but then the next round of forward guidance was received like a doomsday projection.

By now one would think the markets would be used to it.  It’s an obvious enough pattern: first Apple gives conservative guidance about future earnings.  The economy, a product shift, a parts shortage…something, warrants more caution.  Next, the numbers come: conservative projections are blown away by stellar earnings that probably shouldn’t have been a surprise.  Then, lest expectations get too lofty, the upside of the stellar earnings is tempered with another round of conservative guidance.  It’s the Apple M.O., the “Oppenheimer effect”:  Apple’s way of under promising, over delivering then under promising again.

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Today was Yahoo’s big test, their SAT, their GRE, their LSAT.  All were waiting to see how they’d fare. Would earnings be stellar? Would they be average?  How were cash flows? What was the state of the display ad business?

With Google’s numbers already out, Yahoo’s Q1 earnings were on call to be the second benchmark to measure the Internet ad economy. With Microsoft’s takeover offer pending, the numbers were also set to provide a scorecard against which to measure the bid.  Too low? Too high?  Just right?

Turns out, in the test, Yahoo earned a nice comfortable B…a passing grade, good, not bad, better than average but not great either.  

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It has been the case time and again in recent memory: Wall Street is less about “what you’ve done for me lately” than about “what you plan to do for me next.”  That was a lesson served anew today to Netflix which reported decent earnings after the close of markets but disappointed with their forward projections.

After building positive momentum in recent quarters, the movie rental service reported Q1 earnings of $13.4 million or (21 cents a share) on revenue of $326.2million.  Less stock compensation related charges, the winter quarter would have yielded 23 cents a share.   Those results were a reasonable increase over earnings of $9.9 million (14c/share) on revenue of $305.3 million for the same period a year ago.

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Mark Twain once quipped "The news of my death has been greatly exaggerated."  The same seems to be true for the state of the Internet advertising market.  Today, with a market on pins and needles in anticipation, Google reported Q1 earnings.  Contrary to fears, the news was good.  From the rooftops in Mountain View, Googlers could signal the all clear sign.  Not far away, at Yahoo, the news (and its expected impacted on Microsoft’s takeover efforts) was also greeted with excitement.  Good reports from Google rebuff anecdotal claims about a faltering Internet economy with fact.

During the analysts’ conference call, CEO Eric Schmidt told analysts, “It’s clear we are well positioned for 2008 and beyond, regardless of the business environment we are surrounded by.”

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