The 10-second takeaway
For the quarter ended Dec. 31 (Q4), E.W. Scripps beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank, and GAAP earnings per share dropped significantly.
Margins shrank across the board.
E.W. Scripps chalked up revenue of $197.4 million. The three analysts polled by S&P Capital IQ expected to see revenue of $191.5 million on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $220.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.22. The two earnings estimates compiled by S&P Capital IQ forecast $0.14 per share on the same basis. GAAP EPS of $0.12 for Q4 were 70% lower than the prior-year quarter's $0.40 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.5%, 800 basis points worse than the prior-year quarter. Operating margin was 6.9%, 730 basis points worse than the prior-year quarter. Net margin was 3.2%, 840 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $202.2 million. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $868.9 million. The average EPS estimate is $0.66.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on E.W. Scripps is outperform, with an average price target of $10.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.