Markets
GTN

Scripps Networks (SNI) Up on Stellar Q1 Earnings, Revenues

Scripps Networks Interactive Inc.SNI reported strong first-quarter 2016 financial numbers with earnings and revenues surpassing expectations.

Scripps Networks' earnings (excluding special items) of $1.37 per share easily beat the Zacks Consensus Estimate of $1.01. Earnings also improved 34.3% on a year-over-year basis. The earnings beat came on the back of higher-than-expected revenues.

Scripps Networks Interactive Inc. (SNI) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany

Scripps Networks reported operating revenues of $816.9 million which beat the Zacks Consensus Estimate of $787 million. Revenues were also up 24.1% on a year-over-year basis. The upbeat earnings performance was applauded by investors which resulted in the stock price rally.

First-quarter gross profit (on an adjusted basis) came in at $346.8 million, up 27.4%. Quarterly operating income (on a reported basis) climbed 28.4% year over year to $290 million. At the end of the reported quarter, the company has $322.7 million of cash from operations versus $274.6 million in the prior-year quarter. Free cash flow in the quarter stood at almost $222 million versus $170.5 million a year ago.

At the end of the quarter under review, Scripps Networks had $217 million in cash & marketable securities and $3,200.8 million of outstanding debt on its balance sheet compared with $223.4 million and $3,511.1 million, respectively, at the end of 2015. The debt-to-capitalization ratio stood at 0.60 versus 0.66 at the end of 2015. The company now expects profit on an adjusted basis to grow 8% as opposed to the earlier view of 7%.

Segmental Performance

U.S. Networks

Quarterly revenues came in at $702.8 million, up 9.9%. Within this segment, Advertisement revenues climbed 13.7% year over year to $487.3 million. Distribution revenues were $202.1 million, up 2.2% year over year. Other revenues increased 2.3% year over year to $12.8 million. Segmental profits came in at $359.5 million, up 19.6% year over year.

Brand-wise, HGTV, Food Network, Travel Channel, DIY Network, Cooking Channel, Digital Business and Other revenues improved 14.5%, 5.5%, 6.4%, 8.1%, 7.7%, 18.9% and 24.6% year over year, respectively. However, Great American Country revenues dropped 0.9% year over year.

International Networks

Quarterly total revenue of $121.4 million reflected a substantial increase from the year-ago figure of $24.1 million. Segmental profits came in at $9.8 million as against a loss of $5.9 million a year ago.

Zacks Rank & Stocks to Consider

Scripps Networks has a Zacks Rank #3 (Hold). Better-ranked stocks in the same space include Entercom Communications Corp. ETM , Gray Television Inc. GTN and Sirius XM Holdings SIRI . Entercom sports a Zacks Rank #1 (Strong Buy) while Gray Television and Sirius XM Holdings carry a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

SCRIPPS NETWRKS (SNI): Free Stock Analysis Report

SIRIUS XM HLDGS (SIRI): Free Stock Analysis Report

ENTERCOM COMMUN (ETM): Free Stock Analysis Report

GRAY TELEVSN (GTN): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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.

In This Story

GTN SIRI

Other Topics

Earnings Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More