CBS delivered quarterly earnings and revenue that surpassed analysts' expectations on Wednesday, but all its major segments, with the exception of cable, saw revenue declines.
Shares slid about 2 percent on Wednesday and continued their decline in early U.S. trading on Thursday. The stock was last down about 5 percent in pre-market trading. (How are CBS shares doing now? Click here to track the stock.)
The company also disclosed a $55 million restructuring charge related to cost-cutting measures in its radio and television station operations.
The media conglomerate posted second-quarter earnings of 74 cents per share, up 2 cents from a year ago, while revenue inched up about 1 percent to $3.22 billion, boosted by a 19 percent increase in cable network sales.
Affiliate and subscription fees grew 28 percent year over year, "driven by Showtime's distribution of the highest-grossing pay-per-view boxing event of all time," as well as 40 percent growth in retransmission fees from CBS-affiliated television stations, the company said in a statement, referring to the match between Floyd Mayweather and Manny Pacquiao earlier this year.
However, CBS' other segments—entertainment, publishing and local broadcasting—all saw decreases in sales, and advertising revenue fell 3 percent from a year ago, with content licensing and distribution sales decreasing 10 percent.
CBS said the decrease was mainly due to lower domestic television licensing sales, which were partially offset by higher international television licensing revenues.
Wall Street expected CBS to post earnings of 72 cents per share on $3.21 billion in revenue, according to a consensus estimate from Thomson Reuters.