), which is scheduled to report its second-quarter 2013 earnings
on Jan 24, reaffirmed its earlier adjusted earnings projection of
$2.60 to $2.95 per share for fiscal 2013. Moreover, for the
second quarter, earnings are forecasted in the range of 85 cents
to 90 cents.
The current Zacks Consensus Estimate for the second-quarter of
fiscal 2013 stands at 88 cents a share, indicating an estimated
year-over-year increase of about 25%. Moreover, the Zacks
Consensus Estimate for fiscal 2013 stands at $2.80, reflecting an
estimated year-over-year increase of 11.8%
The company also stated that due to the business realignments
and workforce reductions related to its recent acquisitions, it
will record $7 million ($4 million after-tax, or 10 cents per
share) in charge during the upcoming quarter.
Meredith has been constantly endeavoring to explore and add
alternative revenue generating channels through acquisitions or
strategic alliances. Thereby, the company attempted to reduce its
dependence on conventional advertising.
The company is aggressively expanding its brands through
online platforms, televisions, videos, mobile applications, and
expanding its reach of food and lifestyle content across tablet
products, such as the
Barnes & Noble, Inc
) NOOK Color,
) Kindle Fire, and Samsung Galaxy.
Meredith acquired "Every Day with Rachael Ray" the
award-winning magazine of Reader's Digest Association, and assets
of "FamilyFun": magazine from Disney Publishing Worldwide.
Meredith, the media and publishing company, also acquired the
world's No. 1 digital food site, "Allrecipes.com" for about $175
million, to expand its digital platform. The transaction will be
modestly incremental to its earnings per share and free cash flow
in fiscal 2013.
Going forward, management's strategy will be focused upon
bolstering advertising revenue, primarily in the digital space
and enhancing online consumer transactions, especially magazine
subscription orders. Moreover, the company will be focusing on
brand licensing, marketing services and e-Commerce.
Currently, shares of Meredith hold a Zacks Rank #2 (Buy).
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