CBS Corporation (NYSE: CBS.A and CBS) reported its fourth quarter and full-year 2016 financials last week. While the fourth quarter saw a net loss of $113 million and a decrease in total revenue, CBS’s full-year financials were strong, with total revenue of $13.17 billion, a 4 percent increase over 2015, and net earnings of $1.26 billion.

Q4 2016 highlights include:

• Revenue was $3.52 billion compared to $3.59 billion for the same period last year.
• Revenue for affiliate and subscription fees increased by 13 percent.
• Advertising revenue decreased 3 percent due, in part, to the station having three fewer Thursday Night Football games than the same period last year.
• Operating income was $484 million, compared to $770 million year-over-year.
• Net earnings from continuing operations were $271 million compared to $507 million year-over-year.
• The company reported a net loss of $113 million compared to net earnings of $261 million year-over-year.
• Diluted earnings per share from continuing operations were $0.63 compared to $1.07 for the same period last year.
• EPS was a loss of $0.26 compared to EPS of $0.55 for the same period last year.
• Adjusted EPS was $1.11, a 21 percent increase over $0.92 from the same period last year.
• In the fourth quarter, CBS recorded a one-time pension settlement charge of $211 million.
• The company repurchased 25.4 million shares for $1.5 billion.

Full-year 2016 highlights include:

• Revenue was $13.17 billion, a 4 percent increase from $12.67 billion in revenue in 2015. CBS attributes the increase to an 8 percent increase in advertising revenue from the broadcast of Super Bowl 50 and record political ad revenue.
• Revenue from affiliate and subscription fees was up 9 percent.
• Operating income was $2.62 billion, compared to $2.66 billion for 2015.
• Net earnings from continuing operations were $1.55 billion for 2016 and 2015.
• Net earnings were $1.26 billion for 2016, compared to $1.41 billion for 2015.
• EPS from continuing operations was $3.46, compared to $3.18 for 2015.
• EPS was $2.81 for 2016 compared with $2.89 for 2015.
• Adjusted EPS was $4.11, a 24 percent increase from last year’s adjusted EPS of $3.31.
• The company repurchased 54.3 million share for $3.0 billion during 2016.

“2016 was a phenomenal year for the CBS Corporation, with all-time highs in revenue, operating income, and EPS that came in above $4 for the first time in our Company’s history; and as we begin 2017, I couldn’t be more excited about our growth prospects in the years ahead,” said Leslie Moonves, Chairman and CEO, CBS Corporation, in a press release.

“We are already exceeding our projections to generate billions of dollars in incremental revenue, thanks to our new, fast-growing revenue sources and the strength of our base business. At the CBS Television Network, we are on track to be #1 for the ninth year in a row and 14 out of the past 15 years,” Moonves added.

“We are also taking advantage of the emergence of digital MVPDs through recent deals with Hulu and others at improved economic terms. Plus, our over-the-top subscription streaming services are contributing more meaningfully to our results all the time, and we have yet to launch The Good Fight and Star Trek: Discovery on CBS All Access and Twin Peaks on Showtime OTT here in 2017,” said Moonves. “Across the board, our strategy of creating the best content, and distributing it in all the ways consumers want it, continues to position CBS to succeed no matter how the world changes.”

What’s next? On February 2, 2017, CBS entered into an agreement to merge CBS Radio with a subsidiary of Entercom Communications Corp., a tax-free transaction. The transaction is expected to be completed in the second quarter of 2017. Also, as Moonves noted, CBS will be launching original programming on CBS All Access and Showtime.

Because of Star Trek’s fan base, the show is likely to increase subscriptions to CBS All Access, the network’s over-the-top premium subscription service. CBS All Access has more than 2 million subscribers. According to NASDAQ.com, a Reuters’ analyst estimates revenue of $4 billion and earnings of $0.98 per share for the first quarter of 2017.

Investors didn’t have a significant reaction to the news. At the close of trading on the day financials were released, February 15, common stock (NYSE: CBS) was valued at $65.25 per share. In after-hours trading Friday, February 17, common stock was valued at $65.69. This time last year, February 22, 2016, common stock was $46.87 per share, so it has come up $18.82 in a year’s time.

Class A stock (NYSE: CBS.A) had similar results, finishing February 16 at $66.18 per share and finishing the week at $67.14 on February 17. On February 22, 2016, class A stock was valued at $51.43 per share.

Insider Take:

Last year’s record political advertising revenues will boost many company’s financials for 2016. While companies like CBS won’t see similar revenue this year, CBS has some great things in the works. We’ll be watching its success with CBS All Access, which already has more than 2 million subscribers since it launched the OTT service in 2014.

It was one of the earliest entrants into the OTT market, and it has grown to more than 8,500 episodes on demand in addition to offering streaming live TV and two subscription tiers, a limited commercial offering at $5.99 a month and commercial free for just $9.99 a month.

With its original programming in the works from proven cult classics like Twin Peaks and Star Trek, and an offshoot of The Good Wife – The Good Fight – we expect CBS All Access to continue to grow its subscriber base, giving CBS long-term recurring revenue. We anticipate that 2017 will be a strong year for CBS.