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Scripps Networks (SNI) Beats on Earnings & Revenues in Q4

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Scripps Networks Interactive, Inc. SNI reported better-than-expected results in the fourth quarter of 2017. The company’s earnings (excluding 88 cents from non-recurring items) of $1.38 per share surpassed the Zacks Consensus Estimate of $1.21. Moreover, the bottom line surged 35.3% on a year-over-year basis on the back of higher revenues.

The company’s fourth-quarter operating revenues of $956.1 million also beat the consensus mark of $912.8 million. The top line was up 7.6% year over year on strong TV advertising and distribution revenues. Advertising revenues came in at $678.1 million, up 5.7% year over year while Distribution revenues rose 10.5% to $244.27 million. Meanwhile, Other revenues increased 29.4% year over year.

Fourth-quarter consolidated segment profits (on an adjusted basis) totaled $371.1 million, up 9% year over year. Quarterly operating income (on a reported basis) rose 40.4% to $319.87 million.

At the end of the fourth quarter of 2017, Scripps Networks had $130.36 million in cash & cash equivalents and $2.52 billion of debt (less current portion) on its balance sheet compared with $122.94 million and $2.95 billion, respectively, at the end of 2016.

Incidentally, the company is scheduled to be acquired by Discovery Communications, Inc. DISCA shortly.

Scripps Networks Interactive, Inc Price, Consensus and EPS Surprise


Scripps Networks Interactive, Inc Price, Consensus and EPS Surprise | Scripps Networks Interactive, Inc Quote

Segmental Performance

U.S. Networks

Quarterly revenues came in at $758.74 million, up 3.8% year over year. Advertising revenues inched up 1.3% year over year to $529.92 million on account of strength in pricing in the U.S. advertising market. Distribution revenues improved 10.5% year over year to $213.64 million, driven by a rise in negotiated annual rate as well as revenues from over-the-top distribution platforms.

Segmental (adjusted) profits came in at $338.85 million, up 3.1% year over year owing to rise in operating revenues.

International Networks

Quarterly total revenues of $203.7 million were up 23.2% year over year, riding on favorable foreign currency movements. Segmental adjusted profits totaled $54.81 million compared with $40.94 million in the prior-year quarter.

Conversely, loss (adjusted) from the Corporate and Other segment narrowed to $22.52 million from $29.02 million a year ago.

Zacks Rank & Key Picks

Scripps Networks carries a Zacks Rank #3 (Hold). Two better-ranked stocks in the broader Consumer Discretionary sector are Churchill Downs, Incorporated CHDN and The Walt Disney Company DIS, both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Churchill Downs and The Walt Disney have gained more than 33% and 7%, respectively, in the last six months.

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