Meredith Corporation’s fourth-quarter fiscal 2016 adjusted earnings per share of $1.08 outperformed the Zacks Consensus Estimate of $1.04 and were up 14.9% from the year-ago quarter. Notably, this is the 11th straight quarter in which the company has delivered an earnings beat.

For fiscal 2016, adjusted earnings per share came in at $3.30 per share, ahead of the Zacks Consensus Estimate of $3.27.

The company’s results reflect an improvement in the advertising and digital space. Digital traffic increased to more than 80 million monthly unique visitors.

Digital advertising revenues increased more than 26% in fiscal 2016. Increase in the advertising rate in the Local Media Group supported growth in digital advertising revenues. National media reported a 6% increase in advertising revenues, while Local Media Group non-political advertising revenues were up 5%.

Management provided its earnings per share guidance for fiscal 2017 of approximately $3.50–$3.80. First-quarter fiscal 2017 earnings per share are expected in the range of 70–75 cents, compared with the year-ago level of 52 cents.

The Zacks Consensus Estimate for the first quarter and fiscal 2017 are pegged at 71 cents and $3.69, respectively.

Revenues and Margins

Total revenue for the quarter grew 2.3% to $435.8 million, marginally below the Zacks Consensus Estimate of $437 million. Top-line growth was supported by a 0.2% increase in advertising revenues to $231.6 million, 1.3% growth in circulation revenues to $93.5 million and 8% improvement in Other revenues to $110.8 million.

For fiscal 2016, revenues were up 3.5% year over year to $1,649.6 million. Growth was driven by a 2% increase in advertising revenues to $914.2 million, 4.8% growth in Circulation revenues and 6% improvement in Other revenues to $406.8 million.

For first-quarter fiscal 2017, total revenue is anticipated to be increase in the mid-single digits range.

Adjusted operating profit improved 21.7% year over year to $81.2 million in the quarter, while margin was up 140 basis points to 18.6%.

Segment Details

In the fiscal fourth quarter, Meredith’s National Media Group revenues decreased 0.4% year over year to $294.6 million primarily due to a 4.3% decline in Other revenues to $64.4 million.

On the other hand, advertising revenues and circulation revenues increased 0.4% and 1.3% to $136.8 million and $93.5 million, respectively.

Meredith now expects this segment’s revenues to decline in the low-single digits in first-quarter fiscal 2017.

Revenues at the company’s Local Media Group segment rose 8.5% to $141.2 million primarily due to an increase in political advertising revenues and Other revenues. Political advertising revenues increased to $4.5 million from $1.2 million, while Other revenues jumped 31.7% to $46.4 million. The segment’s operating income totaled $46.2 million, up 6.5% year over year.

Management now expects Local Media Group’s revenues to surge nearly 20% in first-quarter fiscal 2017. Nearly one-third of total fiscal 2017 political advertising revenues are anticipated to be generated in the fiscal first quarter.

Other Financial Details

Meredith ended the year with cash and cash equivalents of $25 million, long-term debt of $620 million and shareholders’ equity of $889 million. As of Jun 30, 2016, Meredith had $84 million remaining under its existing share repurchase authorization.

Zacks Rank and Stocks to Consider

Meredith currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are CBS Corporation , The E. W. Scripps Company (SSP Quick QuoteSSP - Free Report) and Starz Inc. . All these stocks hold a Zacks Rank #2 (Buy).

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