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Meredith Ups Earnings View: What More Should You Know?
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Meredith Corporation’s strategic initiatives particularly in digital space, solid earnings surprise history and strong financials are the pillars that reinforce its position as one of the leading media and marketing company. All these aided management to adopt a much more optimistic view about the company’s performance in the near future.
This Zacks Rank #2 (Buy) company raised earnings per share projection for the third quarter and fiscal 2017 on the back of better-than-expected advertising performance, primarily from digital operations at both National and Local Media Groups. Meredith now envisions third-quarter earnings in the band of 85–87 cents, up from 75–80 cents.
Management now projects fiscal 2017 earnings between $4.13 and $4.18 on a GAAP basis, and in the range of $3.85–$3.90 per share, excluding special items. Earlier, the company had guided earnings between $3.78 and $4.08 on a GAAP basis, and in the band of $3.50 to $3.80, on an adjusted basis for the fiscal year.
The current Zacks Consensus Estimate for the third quarter and fiscal 2017 is pegged at 79 cents and $3.75, respectively. We could see an upward revision in the Zacks Consensus Estimate in the coming days, as analysts may revise their estimates to better align with management’s new outlook.
Meredith has impressed investors with its bottom-line performance. The company’s 13th straight quarter of positive earnings surprise, when it reported second-quarter fiscal 2017 results, is the testimony of the same. This is has helped the stock to gain 35.3% in the past one year, and comfortably outperform the Zacks categorized Publishing-Periodicals industry that advanced 32.4%.
Bottom Line
Digital business, brand licensing activities and great group of television stations provides Meredith a diversified landscape for revenue generation. Moreover, in order to expand its media portfolio the company has been making strategic investments as well as acquisitions and partnership deals. As per media reports, the company is making an attempt to acquire Time Inc. (TIME - Free Report) , which has been focusing on the creation of digital properties and intends to increase digital advertising revenues by enhancing native branded content and video.
To strengthen its position, Meredith has launched additional newscasts in the Atlanta, Phoenix, Portland, Nashville, Greenville and Flint/Saginaw markets. The company also renewed its licensing program with Wal-Mart Stores, Inc. (WMT - Free Report) , which allows it to showcase 3,000 SKUs of Better Homes & Gardens branded products at 5,000 outlets and on Walmart.com. The company’s other new brand licensing programs, includes an EatingWell line of frozen foods; SHAPE fitness apparel; and Allrecipes cooking utensils. Further, Meredith launched a new national broadcast television series based on the Allrecipes brand.
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Meredith Ups Earnings View: What More Should You Know?
Meredith Corporation’s strategic initiatives particularly in digital space, solid earnings surprise history and strong financials are the pillars that reinforce its position as one of the leading media and marketing company. All these aided management to adopt a much more optimistic view about the company’s performance in the near future.
This Zacks Rank #2 (Buy) company raised earnings per share projection for the third quarter and fiscal 2017 on the back of better-than-expected advertising performance, primarily from digital operations at both National and Local Media Groups. Meredith now envisions third-quarter earnings in the band of 85–87 cents, up from 75–80 cents.
Management now projects fiscal 2017 earnings between $4.13 and $4.18 on a GAAP basis, and in the range of $3.85–$3.90 per share, excluding special items. Earlier, the company had guided earnings between $3.78 and $4.08 on a GAAP basis, and in the band of $3.50 to $3.80, on an adjusted basis for the fiscal year.
The current Zacks Consensus Estimate for the third quarter and fiscal 2017 is pegged at 79 cents and $3.75, respectively. We could see an upward revision in the Zacks Consensus Estimate in the coming days, as analysts may revise their estimates to better align with management’s new outlook.
Meredith has impressed investors with its bottom-line performance. The company’s 13th straight quarter of positive earnings surprise, when it reported second-quarter fiscal 2017 results, is the testimony of the same. This is has helped the stock to gain 35.3% in the past one year, and comfortably outperform the Zacks categorized Publishing-Periodicals industry that advanced 32.4%.
Bottom Line
Digital business, brand licensing activities and great group of television stations provides Meredith a diversified landscape for revenue generation. Moreover, in order to expand its media portfolio the company has been making strategic investments as well as acquisitions and partnership deals. As per media reports, the company is making an attempt to acquire Time Inc. (TIME - Free Report) , which has been focusing on the creation of digital properties and intends to increase digital advertising revenues by enhancing native branded content and video.
To strengthen its position, Meredith has launched additional newscasts in the Atlanta, Phoenix, Portland, Nashville, Greenville and Flint/Saginaw markets. The company also renewed its licensing program with Wal-Mart Stores, Inc. (WMT - Free Report) , which allows it to showcase 3,000 SKUs of Better Homes & Gardens branded products at 5,000 outlets and on Walmart.com. The company’s other new brand licensing programs, includes an EatingWell line of frozen foods; SHAPE fitness apparel; and Allrecipes cooking utensils. Further, Meredith launched a new national broadcast television series based on the Allrecipes brand.
Other Favorably Ranked Stock
Investors may consider Cable ONE, Inc. (CABO - Free Report) , which has surged 46.5% in the past one year. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
5 Trades Could Profit ""Big-League"" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>