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AMC Networks (AMCX) Lags Q2 Earnings, Tops Revenues

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AMC Networks Inc. (AMCX - Free Report) is engaged in producing programming and movie content. It owns and operates various cable televisions. Its programming networks include AMC, IFC, Sundance Channel, WE tv, and IFC films.

AMC Networks’ strength lies in programs with original content for which it holds ownership rights. In this regard, shows like Breaking Bad and Mad Men have been major hits, driving commercial success for the company. However, one of the biggest drags for AMC Networks is that its network is entirely dependent on The Walking Dead franchise. Recently, The Walking Dead, in its sixth season, witnessed downward ratings in relation to viewers and advertising. The same trend was observed in case of Preacher.

Additionally, severe competitive threat from over-the-top (OTT) online video streaming service providers and other media companies coupled with the recent trend of the bulk of ad revenues skewed toward Internet TV are factors which may mar the quarter’s performance.

AMC Networks currently carries a Zacks Rank #4 (Sell). The company has generated a positive average earnings surprise of 11.93% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings:  AMC Networks reported weaker-than-expected second-quarter 2016 earnings. Our consensus adjusted earnings estimate called $1.33 per share while the company posted figure was $1.14 per share. Investors should note that these figures take out stock option expenses.

Revenue:  AMC Networks reported total revenue of $684.8 million which surpassed our estimate by over $6.8 million.

Key States to Note:  In the reported quarter, adjusted operating cash flow (AOCF) in the National Networks division was up 13% year over year and that of International & Other division was down 4.7% year over year.    

AMC NETWORKS- A Price and EPS Surprise

AMC NETWORKS- A Price and EPS Surprise | AMC NETWORKS- A Quote

Check back later for our full write up on this AMC Networks earnings report later!  

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