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Scripps Networks (SNI) Q3 Earnings Top, Revenues Miss Mark
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Scripps Networks Interactive Inc. reported mixed results in the third quarter of 2017. The company’s earnings (excluding 10 cents from non-recurring items) of $1.05 per share surpassed the Zacks Consensus Estimate of 98 cents. However, the bottom line declined 16.7% on a year-over-year basis mainly due to high costs.
The company’s third-quarter operating revenues of $825.5 million fell short of the Zacks Consensus Estimate of $838.6 million. Revenues were up 2.8% year over year on strong TV advertising and distribution revenues. Advertising revenues came in at $567.40 million, up 2% year over year, while Distribution revenues rose 5.1% to $233.06 million. On the other hand, Other revenues inched up 0.4% year over year.
Third-quarter consolidated segment profits (on an adjusted basis) totaled $303.40 million, down 4.5% year over year. Quarterly operating income (on a reported basis) declined 2.7% to $250.91 million.
At the end of the third quarter of 2017, Scripps Networks had $114.73 million in cash & cash equivalents and $2.67 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 early next year.
Segmental Performance
U.S. Networks
Quarterly revenues came in at $692.37 million, up 0.9% year over year. Advertising revenues slipped 0.6% year over year to $474.80 million on account of lower advertising impressions delivered and a shift in inventory mix. Distribution revenues increased 4.7% year over year to $203.50 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 $308.59 million, down 5.7% year over year, driven by an increase in programming and marketing expenses.
International Networks
Quarterly total revenues of $139.4 million were up 13.1% year over year on the back of favorable foreign currency movements and strong advertising revenues. Segmental adjusted profits totaled $15.91 million compared with $15 million in the prior-year quarter.
Conversely, loss (adjusted) from the Corporate and Other segment narrowed to $21.10 million from $24.69 million a year ago.
Scripps Networks Interactive, Inc Price, Consensus and EPS Surprise
Shares of Sky and Netflix have gained more than 3% and 10%, respectively, in a month.
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Scripps Networks (SNI) Q3 Earnings Top, Revenues Miss Mark
Scripps Networks Interactive Inc. reported mixed results in the third quarter of 2017. The company’s earnings (excluding 10 cents from non-recurring items) of $1.05 per share surpassed the Zacks Consensus Estimate of 98 cents. However, the bottom line declined 16.7% on a year-over-year basis mainly due to high costs.
The company’s third-quarter operating revenues of $825.5 million fell short of the Zacks Consensus Estimate of $838.6 million. Revenues were up 2.8% year over year on strong TV advertising and distribution revenues. Advertising revenues came in at $567.40 million, up 2% year over year, while Distribution revenues rose 5.1% to $233.06 million. On the other hand, Other revenues inched up 0.4% year over year.
Third-quarter consolidated segment profits (on an adjusted basis) totaled $303.40 million, down 4.5% year over year. Quarterly operating income (on a reported basis) declined 2.7% to $250.91 million.
At the end of the third quarter of 2017, Scripps Networks had $114.73 million in cash & cash equivalents and $2.67 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 early next year.
Segmental Performance
U.S. Networks
Quarterly revenues came in at $692.37 million, up 0.9% year over year. Advertising revenues slipped 0.6% year over year to $474.80 million on account of lower advertising impressions delivered and a shift in inventory mix. Distribution revenues increased 4.7% year over year to $203.50 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 $308.59 million, down 5.7% year over year, driven by an increase in programming and marketing expenses.
International Networks
Quarterly total revenues of $139.4 million were up 13.1% year over year on the back of favorable foreign currency movements and strong advertising revenues. Segmental adjusted profits totaled $15.91 million compared with $15 million in the prior-year quarter.
Conversely, loss (adjusted) from the Corporate and Other segment narrowed to $21.10 million from $24.69 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
Guidance for 2017
The company anticipates segment profit in the range of $1.42-$1.43 billion for full-year 2017.
Zacks Rank & Key Picks
Scripps Networks currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Consumer Discretionary sector are Sky plc and Netflix, Inc. (NFLX - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Sky and Netflix have gained more than 3% and 10%, respectively, in a month.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>