UPDATE 1-CBS revenue, profit beat estimates as affiliate fees rise

Dear Viewers,

CBS Corp (CBS.N), owner of the most-watched U.S. TV network, reported a better-than-expected quarterly profit and revenue, helped by an increase in fees from CBS-affiliated stations as well as growth from digital distribution platforms.

CBS, home to popular shows such as "Homeland" and "The Big Bang Theory", said revenue rose 4.3 percent to $3.396 billion in the third quarter.

Analysts had expected revenue of $3.34 billion, according to Thomson Reuters I/B/E/S.

Revenue from CBS's affiliate and subscription fees division rose 13.4 percent to $753 million in the quarter. Revenue from its content licensing and distribution business, one of its fastest growing, rose 6 percent to $1.11 billion.

The company said ad revenue, which accounts for more than 40 percent of total revenue, fell slightly to $1.47 billion.

CBS said net income from continuing operations rose to $514 million, or $1.15 per share, in the three months ended Sept. 30, from $426 million, or 88 cents per share.

Excluding items, CBS earned $1.05 per share, beating the average analyst estimate of 98 cents per share.

CBS has been trying to beef up its online streaming services to attract young viewers, who are ditching the traditional television services.

Alphabet Inc's (GOOGL.O) Google reached an agreement with CBS to carry the network on its planned web TV service, Reuters reported last month.

Apart from its main stay cable business, CBS is also home to publishing house Simon & Schuster.

The company's shares were up just under 1 percent after the bell. Thanks.

UPDATE 3-Northrop posts 16.7 pct profit rise, raises full-year forecast

Dear Viewers,

U.S. weapons maker Northrop Grumman Corp (NOC.N) reported a 16.7 percent rise in quarterly profit on Wednesday, helped by higher sales in its aerospace systems business that makes the center fuselage of the F-35 fighter jets.

Northrop shares hit an all-time high of $229.45 and were still up 3.9 percent at $228.10 in afternoon trading.

Last October, Northrop won the contract to produce the "Raider," the U.S. Air Force's new B-21 long-range bomber. The estimated $80 billion program, expected to produce 100 aircraft, has been shrouded in secrecy since its inception. It is expected to have aircraft ready for combat no sooner than 2025.

The maker of Global Hawk surveillance planes raised its 2016 earnings forecast for the third time this year to a range of $11.55 to $11.75 per share from $10.75 to $11.00. In January, Northrop estimated that 2016 EPS could be between $9.90 and $10.39.

The company now expects full-year sales of $23.9 billion to $24.1 billion, up from $23.5 billion to $24.0 billion.

Analysts, on average, expect 2016 earnings of $11.05 per share, on revenue of $23.82 billion, according to Thomson Reuters I/B/E/S.

Northrop's earnings came a day after Lockheed Martin Corp (LMT.N) reported better-than-expected results and lifted 2016 forecasts, partly due to higher sales from the F-35 program.

The F-35 is the Pentagon's costliest arms program. The U.S. Defense Department expects to spend $391 billion to develop the plane and buy 2,443 of the supersonic, stealthy new warplanes in the coming decades.

Northrop makes the center fuselage for the F-35, which forms a significant portion of the aircraft's internal weapons bay and internal fuel capacity.

Third-quarter revenue at Northrop's aerospace systems business increased 9.4 percent to $2.78 billion.

Help came from increased sales in the F-35 business and increased buying in top-secret programs as well as sales of autonomous systems.

Northrop CFO Ken Bedingfield told analysts on a conference call that the F-35 program now represents about 7 percent of revenue. CEO Wes Bush added that once F-35 production achieves full capacity, the profitability of that program should grow.

Northrop's third-quarter net earnings rose to $602 million, or $3.35 per share, from $516 million, or $2.75 per share, a year earlier. (bit.ly/2eR8BSK)

The profit included a federal tax benefit of $42 million, or 23 cents per share.

Total sales rose 2.9 percent to $6.16 billion.

So far this year Northrop's shares have risen more than 20 percent.


NEW YORK Boeing Co will not cut production of the 777 jetliner by more than two planes a month and is taking more time to decide on whether a cut is even needed, Chief Executive Dennis Muilenburg said on Wednesday.

MOSCOW/STOCKHOLM Russia is sharply upgrading the firepower of its Baltic Fleet by adding warships armed with long-range cruise missiles to counter NATO's build-up in the region, Russian media reported on Wednesday. Thanks.