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Scripps Networks (SNI) Q1 Earnings Beat, Revenues in Line
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Scripps Networks Interactive Inc. reported better-than-expected results in the first quarter of 2017. The company’s earnings (excluding special items) of $1.53 per share surpassed the Zacks Consensus Estimate of $1.18. Also, the bottom line improved 11.68% on a year-over-year basis.
The company’s first-quarter operating revenues of $855.1 million were in line with the Zacks Consensus Estimate. Revenues were up 4.7% year over year on strong TV advertising and distribution revenues in the U.S.
First-quarter consolidated segment profits (on an adjusted basis) totaled $368.7 million, up 6.3% year over year. Quarterly operating income (on a reported basis) rose 13.6% year over year to $329.55 million.
At the end of the first quarter of 2017, Scripps Networks had $107.67 million in cash & cash equivalents and $2,803.5 million of outstanding debt (less current portion) on its balance sheet, compared with $122.94 million and $2,952.4 million, respectively, at the end of 2016. In addition, free cash flow at the end of the first quarter of 2017 was almost $164.93 million, compared with $221.98 million in the prior-year quarter.
Segmental Performance
U.S. Networks
Quarterly revenues came in at $736.9 million, up 4.9% year over year. Advertisement revenues climbed 5.1% year over year to $512.1 million oncontinued strength in pricing in the U.S. advertising market for the company’s lifestyle offerings. Distribution revenues also increased 4.5% year over year to $211.1 million, driven by an increase in negotiated annual rate and revenues from new over-the-top distribution platforms.
Other revenues improved 6.9% year over year to $13.7 million. Segmental (adjusted) profits came in at $383.6 million, up 5.6% year over year on higher revenues.
Segmental operating revenues from brands like HGTV, Food Network, Travel Channel, Cooking Channel, Digital Business and other revenues improved 5.3%, 6.1%, 1.9%, 11%, 4.3% and 10.2% year over year, respectively. Nonetheless, DIY Network and Great American Country revenues dropped 2.5% and 1.4%, respectively, year over year.
International Networks
Quarterly total revenue of $125.5 million was up 3.5% year over year. Segmental adjusted profits totaled $15.5 million, up 58.16% on the back of higher revenues.
Conversely, loss (adjusted) from the Corporate and Other segment widened to $30.4 million from $26.3 million a year ago.
Scripps Networks Interactive, Inc Price, Consensus and EPS Surprise
Shares of Central European Media, Nexstar Broadcasting and Salem Media gained over 54%, 15% and 17%, respectively, on a year-to-date basis.
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Scripps Networks (SNI) Q1 Earnings Beat, Revenues in Line
Scripps Networks Interactive Inc. reported better-than-expected results in the first quarter of 2017. The company’s earnings (excluding special items) of $1.53 per share surpassed the Zacks Consensus Estimate of $1.18. Also, the bottom line improved 11.68% on a year-over-year basis.
The company’s first-quarter operating revenues of $855.1 million were in line with the Zacks Consensus Estimate. Revenues were up 4.7% year over year on strong TV advertising and distribution revenues in the U.S.
First-quarter consolidated segment profits (on an adjusted basis) totaled $368.7 million, up 6.3% year over year. Quarterly operating income (on a reported basis) rose 13.6% year over year to $329.55 million.
At the end of the first quarter of 2017, Scripps Networks had $107.67 million in cash & cash equivalents and $2,803.5 million of outstanding debt (less current portion) on its balance sheet, compared with $122.94 million and $2,952.4 million, respectively, at the end of 2016. In addition, free cash flow at the end of the first quarter of 2017 was almost $164.93 million, compared with $221.98 million in the prior-year quarter.
Segmental Performance
U.S. Networks
Quarterly revenues came in at $736.9 million, up 4.9% year over year. Advertisement revenues climbed 5.1% year over year to $512.1 million oncontinued strength in pricing in the U.S. advertising market for the company’s lifestyle offerings. Distribution revenues also increased 4.5% year over year to $211.1 million, driven by an increase in negotiated annual rate and revenues from new over-the-top distribution platforms.
Other revenues improved 6.9% year over year to $13.7 million. Segmental (adjusted) profits came in at $383.6 million, up 5.6% year over year on higher revenues.
Segmental operating revenues from brands like HGTV, Food Network, Travel Channel, Cooking Channel, Digital Business and other revenues improved 5.3%, 6.1%, 1.9%, 11%, 4.3% and 10.2% year over year, respectively. Nonetheless, DIY Network and Great American Country revenues dropped 2.5% and 1.4%, respectively, year over year.
International Networks
Quarterly total revenue of $125.5 million was up 3.5% year over year. Segmental adjusted profits totaled $15.5 million, up 58.16% on the back of higher revenues.
Conversely, loss (adjusted) from the Corporate and Other segment widened to $30.4 million from $26.3 million a year ago.
Scripps Networks Interactive, Inc Price, Consensus and EPS Surprise
Scripps Networks Interactive, Inc Price, Consensus and EPS Surprise | Scripps Networks Interactive, Inc Quote
Zacks Rank & Key Picks
Scripps Networks currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the Broadcast Radio and Television sector are Central European Media Enterprises , Nexstar Broadcasting Group (NXST - Free Report) and Salem Media Group (SALM - Free Report) . All of these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Central European Media, Nexstar Broadcasting and Salem Media gained over 54%, 15% and 17%, respectively, on a year-to-date basis.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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