Shares of Meredith CorporationMDP are riding high on positive earnings surprise, robust fiscal 2017 outlook, strategic endeavors and acquisitions. Notably, these factors have driven the company's shares up by 38.3% in the past one year, outperforming the Zacks categorized Publishing-Periodical industry's gain of 29.1%.
Let's delve deeper
Ever since Meredith raised the third quarter and fiscal 2017 earnings outlook on Mar 21, its shares have gained nearly 5%. Management now projects fiscal 2017 earnings between $4.13 and $4.18 on a GAAP basis, and in the range of $3.85-$3.90 per share, excluding special items. Earlier, the company had guided earnings between $3.78 and $4.08 on a GAAP basis, and in the band of $3.50 to $3.80, on an adjusted basis for the fiscal year.
For the third quarter, the Zacks Rank #2 (Buy) company expects earnings in the band of 85-87 cents, up from 75-80 cents, on the back of better-than-expected advertising performance, primarily from digital operations at both National and Local Media Groups.
Digital business, brand licensing activities and great group of television stations provides Meredith a diversified landscape for revenue generation. Moreover, in order to expand media portfolio, the company has been making strategic investments as well as acquisitions and partnership deals. As per media reports, it is making an attempt to acquire Time Inc. TIME , which has been focusing on the creation of digital properties and intends to increase digital advertising revenues by enhancing native branded content and video.
To strengthen position, Meredith has launched additional newscasts in the Atlanta, Phoenix, Portland, Nashville, Greenville and Flint/Saginaw markets. The company also renewed licensing program with Wal-Mart Stores, Inc. WMT , which allows it to showcase 3,000 SKUs of Better Homes & Gardens branded products at 5,000 outlets and on Walmart.com. The company's other new brand licensing programs, includes an EatingWell line of frozen foods; SHAPE fitness apparel; and Allrecipes cooking utensils. Further, Meredith launched a new national broadcast television series based on the Allrecipes brand.
From the above analysis it is apparent that Meredith is a stock that deserves a place in your portfolio. Investors may also consider Cable ONE, Inc. CABO , which has surged 43.6% in the past one year. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
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