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Scripps Networks Interactive Inc.

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Scripps Networks' top line in the second quarter is expected to be driven by strong growth in advertising revenues in its U.S. Networks division. The company's efforts to exapnd its operations are also impressive. The company recently announced plans to acquire Spoon University. We are also impressed by its efforts to reward shareholders. In Feb 2017, the company hiked its quarterly dividend by 20% to $0.30 per share. However, the company's high debt levels bother us. We also remain mindful of other headwinds like mounting programming costs, advertising and marketing expenses. The headwinds are likely to hurt the company's bottom line in the second quarter of 2017. Detailed results should be out on Aug 9. On the conference call, we expect an update on rumors regarding its merger with Discovery or Viacom. Shares of Scripps Networks have underperformed its industry over the past one year. 

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