Scripps Networks Beats Q3 Earnings & Revenue Estimates
Scripps Networks Interactive Inc. SNI reported strong third-quarter 2015 financial numbers wherein both the top and the bottom line outpaced the Zacks Consensus Estimate.
GAAP net income in the third quarter was $124.6 million or 96 cents per share compared with 131.3 million or 93 cents in the prior-year quarter. Further, the company’s third-quarter adjusted earnings of $1.06 per share beat the Zacks Consensus Estimate of 97 cents.
Scripps Networks Interactive Inc. (SNI) - Earnings Surprise | FindTheCompany
Total revenue in the third quarter of 2015 climbed 20.4% year over year to $776.1 million and also surpassed the Zacks Consensus Estimate of $764 million.
Third-quarter gross profit came in at $505.9 million against $437.3 million in the prior-year quarter. Quarterly gross margin was 65.2% compared with 67.9% in the year-ago quarter. Quarterly operating income fell 13.5% year over year to $271 million. Operating margin, in the reported quarter, was 34.9% compared with 37.1% in the prior-year quarter.
At the end of the first nine months of 2015, the company has $658.5 million of cash from operations compared with $580.2 million in the prior-year period. Likewise, free cash flow in the quarter was $626.4 million compared with $538.4 million a year ago.
At the end of the quarter under review, Scripps Networks had $247.4 million in cash & marketable securities and $4,133.1 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 0.70 versus 0.47 at the end of 2014.
Segmental Performance
U.S. Networks
Quarterly revenues came in at $660.9 million, reflecting annualized growth of 6.2%. Within this segment, Advertisement revenues climbed 5.2% year over year to $447.8 million. Network Affiliate fee revenues were $199.2 million, up 6.3% year over year. Other revenues increased 49.2% year over year to $13.8 million.
Brand-wise, HGTV revenues totaled approximately $248.3 million, up 6.3% year over year. Food Network revenues came in at $214.2 million, up 1.1% year over year. Travel Channel revenues dropped 0.4% year over year to $73.3 million. DIY Network revenues were $41.1 million, up 11.4% year over year.
Cooking Channel revenues were $33.5 million, up 17.6% year over year. Great American Country revenues were $7.5 million, down 1.9% year over year. Digital revenues deteriorated 37.6% year over year to approximately $36.3 million. Other revenues totaled $8.6 million, up 67.2% year over year.
International Networks
Quarterly total revenue of $118.7 million reflected a substantial increase of 399.5% year over year. Segmental profits grossed $10.9 million, up 283.7% year over year.
Guidance
Scripps Networks projected revenue growth of 13% for 2015.
Zacks Rank & Stocks to Consider
Scripps Networks has a Zacks Rank #3 (Hold). Better-ranked stocks in the same space include AMC Networks Inc. AMCX, Gray Television, Inc. GTN and Sinclair Broadcast Group, Inc. SBGI. All three stocks sport a Zacks Rank #1 (Strong 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
SINCLAIR BROADC (SBGI): Free Stock Analysis Report
AMC NETWORKS- A (AMCX): Free Stock Analysis Report
GRAY TELEVSN (GTN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
