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AMC Networks (AMCX) Outshines Q3 Earnings, Revenues

AMC Networks Inc.AMCX reported strong financial results for the third quarter of 2015 with both the top and the bottom line surpassing the Zacks Consensus Estimate.

Quarterly net income was $72.8 million or 99 cents per share compared with $53.2 million or 73 cents per share in the year-ago quarter. Third-quarter adjusted earnings per share of $1.09 were significantly above the Zacks Consensus Estimate of 87 cents per share.

Quarterly total revenue of $632.2 million was up 21.7% year over year ahead of the Zacks Consensus Estimate of $596 million. National Networks revenues were $521.6 million, up a substantial 31.3% year over year. International and Other revenues were $114.1 million, up 7% year over year.

Quarterly total adjusted operating cash flow (ACOF) was $190.6 million, up a whopping 34.3% year over year. National Networks AOCF was $186.6 million, up 45.1% and International and Other AOCF was $6.8 million, down 47.6%.

Third-quarter operating costs and expenses totaled $472.9 million, up 15.5% year over year. Operating income was $159.3 million, up a significant 44.5% year over year. Operating margin was 25.2% compared with 21.2% in the prior-year quarter.

During the reported quarter, AMC Networks generated $301 million of cash from operations against $261.8 million in the prior-year quarter. Free cash flow was $252.2 million compared with $237.5 million in the year-ago quarter. At the end of the third quarter of 2015, AMC Networks had $307.6 million of cash and cash equivalents and $2,724.5 million of debt outstanding.

Important Operating Data

As of Sep 30, 2015, in the U.S., AMC Networks had 93.8 million AMC subscribers, 86.5 million WE tv subscribers, 77.1 million BBC AMERICA subscribers, 71.7 million IFC subscribers and 60.1 million Sundance TV subscribers.

Zacks Rank & Stocks to Consider

AMC Networks currently has a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the industry include Gray Television Inc. GTN , Sinclair Broadcast Group Inc. SBGI and Scripps Networks Interactive Inc. SNI . While both Gray Television and Sinclair sport a Zacks Rank #1, Scripps carries a Zacks Rank #2 (Buy).

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AMC NETWORKS- A (AMCX): Free Stock Analysis Report

SCRIPPS NETWRKS (SNI): Free Stock Analysis Report

SINCLAIR BROADC (SBGI): Free Stock Analysis Report

GRAY TELEVSN (GTN): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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