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Scripps Networks at 52-Week Low on Competition & Currency

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Shares of leading global lifestyle network operator Scripps Networks Interactive Inc.SNI declined 3.2% yesterday, touching a 52-week low of $49.36 and finally closing at $49.39. Moreover, year to date, shares of the company have lost over 34%.

Scripps Networks' plan to expand its presence in Europe may lead to foreign currency exchange rate risks. Moreover, at the end of the second quarter of 2015, the company's debts totaled $3.44 billion compared with $1.5 billion a year ago. Thus, mounting debt levels coupled with rising programming costs are likely to hurt margins for the company going forward. Moreover, sluggish economic growth across Europe may impact the company's ad revenues.

In addition, continuous acquisition of media companies may lead to integration risks which might dent the company's cash position.

Scripps Networks faces stiff competition in both its Lifestyle Media and Interactive Services businesses from alternative providers of similar services. The company's national television networks compete with other broadcast, Internet and national television networks. Further, Scripps Networks competes for advertising revenues with media alternatives like broadcast networks, Internet, newspapers, radio stations and billboards.

Additionally, earnings estimate revisions have exhibited a negative trend of late. Over the past 60 days, the company witnessed negative estimate revisions for the third quarter, leading to the Zacks Consensus Estimate contracting by 4.9% to 97 cents.

Scripps Networks currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Gray Television, Inc. GTN , Nexstar Broadcasting Group, Inc. NXST and Entercom Communications Corp. ETM . All three companies carry a Zacks Rank #2 (Buy).

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SCRIPPS NETWRKS (SNI): Free Stock Analysis Report

ENTERCOM COMMUN (ETM): Free Stock Analysis Report

NEXSTAR BRDCSTG (NXST): 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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