Scripps Networks Interactive Inc. Earnings: Two Quarters of Declining Profit Snapped

Wall St. Cheat Sheet

S&P 500 component Scripps Networks Interactive Inc. reported its results for the fourth quarter. Scripps Networks Interactive is a media company operating as a lifestyle content and interactive services provider. The company engages in national television networks, such as Food Network, and Internet-based media outlets like Shopzilla.

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Scripps Networks Interactive Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Scripps Networks Interactive Inc. rose to $135 million (84 cents per share) vs. $130.6 million (77 cents per share) in the same quarter a year earlier. This marks a rise of 3.4% from the year earlier quarter.

Revenue: Rose 9.5% to $553.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: Scripps Networks Interactive Inc. beat the mean analyst estimate of 81 cents per share. Analysts were expecting revenue of $562.4 million.

Quoting Management: “The high level of engagement our focused lifestyle networks have created with media consumers, and the value our television and interactive brands deliver to advertisers as preferred marketing platforms, is reflected in the company’s strong fourth-quarter operating results,” said Kenneth W. Lowe, chairman, president and chief executive officer of Scripps Networks Interactive. “Our consistent track record of double-digit revenue and segment profit growth continued during the three-month period, and contributed to a very good 2011.”

Key Stats:

Last quarter’s profit increase breaks a streak of two consecutive quarters of year-over-year profit decreases. In the third quarter, net income fell 3% while the figure dropped in the second quarter.

The company beat estimates last quarter after being in line with expectations in the third quarter with net income of 65 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 71 cents a share to 70 cents over the last sixty days. Over the past three months, the average estimate for the fiscal year has climbed from $2.82 per to share to $2.83.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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