Pure-play lifestyle cable network company
Scripps Network Interactive
) is set to release its fourth-quarter 2012 results before the
opening bell on Feb 7, 2013.
Last quarter, the company delivered a 4% positive earnings
surprise. Let's see how things are shaping up for this
Factors to be Considered this Quarter
The lifestyle media segment, which represents 97.5% of the
company revenue, is expected to deliver positive results on the
back of improved ratings for food and Home and Garden Television
(HGTV) and continuous progress in the travel business. Systematic
share buyback program of the company is further expected to
Scripps Network Interactive generates 65% of its revenue from
marketing and advertising spending of the corporate sector in the
U.S., which is sensitive to economic conditions. Thus the
sluggish growth of the U.S. economy remains a major concern for
Our proven model does not conclusively show that Scripps
Network Interactive is likely to beat the Zacks Consensus
Estimate this quarter. That is because a stock needs to have both
a positive Expected Surprise Prediction (ESP) (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1 (Strong Buy) or at least Zacks Rank #2
(Buy) or Zacks Rank #3 (Hold) for this to happen. Unfortunately
this is not the case here as elaborated below.
Zacks ESP: This is because the Most Accurate estimate stands
at 91 cents similar to the Zacks Consensus Estimate. This leads
to a ESP of 0.00% for Scripps Network Interactive.
Zacks Rank #4 (Sell): Scripps Network Interactive's Zacks Rank
#4 decreases the predictive power of ESP.
We caution investors against the stock going into the earnings
announcement, as a Zacks earnings ESP of 0.00% combined with
Zacks Rank #4 lowers the possibility of an earnings surprise.
Other Stocks to Consider
Here are some other companies to consider as our model shows
they have the right combination of elements to post an earnings
beat this quarter:follow the example mentioned below, no need
give the earnings release date.
AMC Networks Inc.
) has Earnings ESP of +9.52% and carries a Zacks Rank #2
) has Earnings ESP of +1.89% and carries a Zacks Rank #3
News Corp Inc.
) has Earnings ESP of +4.76% and carries a Zacks Rank #3
(Note: We are reissuing this article to correct an error.
The original version, published Feb 4, 2013, is no longer to be
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