What happened 

Shares of cable television company AMC Networks Inc. (NASDAQ:AMCX) fell 11.2% in May, according to data provided by S&P Global Market Intelligence, after reporting a mixed earnings report. 

Zombies walking into a burning city.

Image source: Getty Images.

So what 

Revenue increased 1.9% to $720.2 million and adjusted earnings per share were $2.10, which topped estimates from Wall Street. But revenue fell short of the $721.2 million analysts expected and investors are getting concerned about the network's reliance on The Walking Dead

The bigger news long-term could be that The Walking Dead is losing viewers and, as the driver of AMC's business, that could be bad news. And the slight revenue miss was enough for investors to have a bit of a panicked response to the earnings report in May. 

Now what 

There's no question that AMC is dependent on The Walking Dead and its drop in ratings is currently a negative for the company. But management is making investments in alternative revenue streams, beyond cable fees and traditional advertising. And amid that transition the small increase in revenue is a decent result and a stock trading for 13.5 times trailing earnings isn't a bad price for investors. With a current share repurchase program of $1 billion the stock could end up being a great value for long-term for investors. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.