Scripps Networks Interactive, Inc. reported better-than-expected results in the fourth quarter of 2017. The company’s earnings (excluding 88 cents from non-recurring items) of $1.38 per share surpassed the Zacks Consensus Estimate of $1.21. Moreover, the bottom line surged 35.3% on a year-over-year basis on the back of higher revenues.
The company’s fourth-quarter operating revenues of $956.1 million also beat the consensus mark of $912.8 million. The top line was up 7.6% year over year on strong TV advertising and distribution revenues. Advertising revenues came in at $678.1 million, up 5.7% year over year while Distribution revenues rose 10.5% to $244.27 million. Meanwhile, Other revenues increased 29.4% year over year.
Fourth-quarter consolidated segment profits (on an adjusted basis) totaled $371.1 million, up 9% year over year. Quarterly operating income (on a reported basis) rose 40.4% to $319.87 million.
At the end of the fourth quarter of 2017, Scripps Networks had $130.36 million in cash & cash equivalents and $2.52 billion of debt (less current portion) on its balance sheet compared with $122.94 million and $2.95 billion, respectively, at the end of 2016.
Incidentally, the company is scheduled to be acquired by Discovery Communications, Inc. shortly.
Segmental Performance
U.S. Networks
Quarterly revenues came in at $758.74 million, up 3.8% year over year. Advertising revenues inched up 1.3% year over year to $529.92 million on account of strength in pricing in the U.S. advertising market. Distribution revenues improved 10.5% year over year to $213.64 million, driven by a rise in negotiated annual rate as well as revenues from over-the-top distribution platforms.
Segmental (adjusted) profits came in at $338.85 million, up 3.1% year over year owing to rise in operating revenues.
International Networks
Quarterly total revenues of $203.7 million were up 23.2% year over year, riding on favorable foreign currency movements. Segmental adjusted profits totaled $54.81 million compared with $40.94 million in the prior-year quarter.
Conversely, loss (adjusted) from the Corporate and Other segment narrowed to $22.52 million from $29.02 million a year ago.
Zacks Rank & Key Picks
Scripps Networks carries a Zacks Rank #3 (Hold). Two better-ranked stocks in the broader Consumer Discretionary sector are Churchill Downs, Incorporated (CHDN - Free Report) and The Walt Disney Company (DIS - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Churchill Downs and The Walt Disney have gained more than 33% and 7%, respectively, in the last six months.
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Scripps Networks Interactive, Inc. reported better-than-expected results in the fourth quarter of 2017. The company’s earnings (excluding 88 cents from non-recurring items) of $1.38 per share surpassed the Zacks Consensus Estimate of $1.21. Moreover, the bottom line surged 35.3% on a year-over-year basis on the back of higher revenues.
The company’s fourth-quarter operating revenues of $956.1 million also beat the consensus mark of $912.8 million. The top line was up 7.6% year over year on strong TV advertising and distribution revenues. Advertising revenues came in at $678.1 million, up 5.7% year over year while Distribution revenues rose 10.5% to $244.27 million. Meanwhile, Other revenues increased 29.4% year over year.
Fourth-quarter consolidated segment profits (on an adjusted basis) totaled $371.1 million, up 9% year over year. Quarterly operating income (on a reported basis) rose 40.4% to $319.87 million.
At the end of the fourth quarter of 2017, Scripps Networks had $130.36 million in cash & cash equivalents and $2.52 billion of debt (less current portion) on its balance sheet compared with $122.94 million and $2.95 billion, respectively, at the end of 2016.
Incidentally, the company is scheduled to be acquired by Discovery Communications, Inc. shortly.
Segmental Performance
U.S. Networks
Quarterly revenues came in at $758.74 million, up 3.8% year over year. Advertising revenues inched up 1.3% year over year to $529.92 million on account of strength in pricing in the U.S. advertising market. Distribution revenues improved 10.5% year over year to $213.64 million, driven by a rise in negotiated annual rate as well as revenues from over-the-top distribution platforms.
Segmental (adjusted) profits came in at $338.85 million, up 3.1% year over year owing to rise in operating revenues.
International Networks
Quarterly total revenues of $203.7 million were up 23.2% year over year, riding on favorable foreign currency movements. Segmental adjusted profits totaled $54.81 million compared with $40.94 million in the prior-year quarter.
Conversely, loss (adjusted) from the Corporate and Other segment narrowed to $22.52 million from $29.02 million a year ago.
Zacks Rank & Key Picks
Scripps Networks carries a Zacks Rank #3 (Hold). Two better-ranked stocks in the broader Consumer Discretionary sector are Churchill Downs, Incorporated (CHDN - Free Report) and The Walt Disney Company (DIS - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Churchill Downs and The Walt Disney have gained more than 33% and 7%, respectively, in the last six months.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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