GE's NBC Numbers Bode Well For CBS (CBS)

GE GE reported 2Q earnings today, and management noted strength in advertising markets and local stations. NBC revenue was up 5% and operating profit was up $13%. Jefferies analysts Brian Shipman, Kip Paulson, and Robert McManus believe these are strong signals for television companies. The analysts said, "Our current 2Q10 estimates assume 4% revenue growth in the Entertainment segment (including syndication revenue) and 24% top-line growth at the local TV stations. Given CBS' superior ratings, we view these data points out of NBC as good news ahead of CBS' 2Q." CBS' CBS 2Q results are scheduled for August 3rd.