Scripps Networks Interactive
The 10-second takeaway
For the quarter ended March 31 (Q1), Scripps Networks Interactive beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share increased significantly.
Gross margins shrank, operating margins contracted, net margins expanded.
Scripps Networks Interactive tallied revenue of $535.3 million. The 17 analysts polled by S&P Capital IQ predicted a top line of $519.9 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $480.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.73. The 21 earnings estimates compiled by S&P Capital IQ predicted $0.60 per share. GAAP EPS of $0.73 for Q1 were 24% higher than the prior-year quarter's $0.59 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 63.6%, 250 basis points worse than the prior-year quarter. Operating margin was 40.1%, 270 basis points worse than the prior-year quarter. Net margin was 21.5%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $591.9 million. On the bottom line, the average EPS estimate is $0.88.
Next year's average estimate for revenue is $2.28 billion. The average EPS estimate is $3.25.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 99 members out of 112 rating the stock outperform, and 13 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Scripps Networks Interactive a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Scripps Networks Interactive is hold, with an average price target of $49.20.
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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. Motley Fool newsletter services have recommended buying shares of Scripps Networks Interactive. 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.