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Scripps Networks Q1 Earnings Beat, Revenues Miss Mark - Analyst Blog

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Scripps Networks Interactive Inc.SNI reported first-quarter 2015 earnings wherein the bottom line outpaced the Zacks Consensus Estimate while the top line missed.

GAAP net income in the first quarter was $123.8 million or 94 cents per share compared with 4128.3 million or 88 cents per share in the prior-year quarter. However, the company's first-quarter adjusted earnings of $1.02 per share handily beat the Zacks Consensus Estimate of 91 cents.

Scripps Networks Interactive Inc. - Earnings Surprise | FindTheCompany

Total revenue in the first quarter of 2015 climbed 2.3% year over year to $658.3 million. Revenues, however, fell short of the Zacks Consensus Estimate of $663 million.

First-quarter gross profit came in at $459.2 million against $462.6 million in the prior-year quarter. Quarterly gross margin stood at 69.8% compared with 71.9% in the year-ago quarter. Quarterly operating income fell 5.8% year over year to $225.8 million. Operating margin, in the reported quarter, was 34.3% against 37.2% in the prior-year quarter.

The company exited the first quarter with $274.8 million of cash from operations versus $218.3 million in the prior-year quarter. Likewise, free cash flow in the quarter stood at $265.4 million versus $209.1 million a year ago.

At the end of the quarter under review, Scripps Networks had $154.8 million in cash & marketable securities and $1,844.6 million of outstanding debt on its balance sheet compared with $878.2 million and $1,494.4 million, respectively, at the end of 2014. The debt-to-capitalization ratio stood at 0.56 versus 0.47 at the end of 2014.

Segment Performance

Lifestyle Media Segment

Quarterly revenues came in at $634.2 million, reflecting annualized growth of 1.5%. Within this segment, Advertisement revenues climbed 0.1% year over year to $428.6 million. Network Affiliate fee revenues were $197.8 million, up 4% year over year. Other revenues increased 13.1% year over year to $7.8 million.

Brand-wise, HGTV revenues were approximately $237.3 million, up 4.4% year over year. Food Network revenues came in at $217.3 million, down 0.8% year over year. Travel Channel revenues declined 4.8% year over year to $75.9 million. DIY Network revenues were $38.4 million, up 9.2% year over year.

Cooking Channel revenues were $30.6 million, up 8.2% year over year. Great American Country revenues stood at $7.4 million, up 3.5% year over year. Digital revenues fell 6.9% year on year to approximately $24.4 million. Other revenues totaled $3.4 million, up 5.3% year over year.

Corporate Segment

Quarterly total revenue of $24.1 million was up 28.4% year over year. Loss in the segment stood at $38.9 million, up 9.3% year over year.

Stocks to Consider

Scripps Networks has a Zacks Rank #3 (Hold). Better-ranked stocks in the same space include AMC Networks Inc. AMCX , Media General, Inc. MEG and Starz STRZA . All three stocks sport a Zacks Rank #1 (Strong Buy).

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SCRIPPS NETWRKS (SNI): Free Stock Analysis Report

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

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MEDIA GENERAL (MEG): 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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