What happened

Shares of TV-content producer AMC Networks (NASDAQ:AMCX) traded 13.3% lower at 2:20 p.m., EST. The company reported fourth-quarter results this morning, missing Wall Street's earnings estimates despite a strong showing on the top line.

So what

The producer of hit shows like The Walking Dead and Better Call Saul reported fourth-quarter sales of $785 million, 1.2% above the year-ago quarter. Adjusted earnings fell 12%, to $1.69 per share. Your average analyst had been looking for earnings near $1.78 per share on revenues in the neighborhood of $776 million.

A businessman watches a large red arrow crashing down through the floor at his feet.

Image source: Getty Images.

Now what

The bottom-line miss was the result of higher operating costs, as AMC Networks expanded its international streaming-services platform, which also explained the impressive top-line results. Investors were quick to hit the sell button, ignoring the fact that AMC Networks is sacrificing some bottom-line profits in order to boost its long-term revenue growth in the skyrocketing market for video-streaming services.

The stock now trades at a dirt cheap 3.1 times trailing earnings, or 4.2 times free cash flows. I think that's a fantastic price for a strongly profitable company with clear growth prospects as the streaming market evolves before our eyes.