Scripps Networks Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Scripps Networks (NYSE:SNI) will unveil its latest earnings on Thursday, November 1, 2012. Scripps Networks Interactive is a media company operating as a lifestyle content and interactive services provider. The company engages in national television networks, such as Food Network, and Internet-based media outlets like Shopzilla.

Scripps Networks Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 75 cents per share, a rise of 15.4% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting profit of $3.37 per share, a rise of 17.8% from last year.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked net income of 93 cents per share versus a mean estimate of profit of 87 cents per share.

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A Look Back: In the second quarter, profit rose 83.9% to $142.4 million (93 cents a share) from $77.4 million (46 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 12.5% to $601 million from $534 million.

Wall St. Revenue Expectations: Analysts are projecting a rise of 10.4% in revenue from the year-earlier quarter to $556 million.

Stock Price Performance: Between August 2, 2012 and October 26, 2012, the stock price rose $4.98 (8.9%), from $56.17 to $61.15. The stock price saw one of its best stretches over the last year between August 1, 2012 and August 13, 2012, when shares rose for nine straight days, increasing 13.3% (+$7.14) over that span. It saw one of its worst periods between July 2, 2012 and July 12, 2012 when shares fell for eight straight days, dropping 8.1% (-$4.65) over that span.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 3.4% in the fourth quarter of the last fiscal year and 14.3% in the first quarter before increasing again in the second quarter.

On the top line, the company is looking to build on last quarter’s revenue increase, which snapped a string of revenue drops. Revenue fell 1% in the third quarter of the last fiscal year, 3.4% in the fourth quarter of the last fiscal year and 0.1% in the first quarter before climbing in the second quarter.

Analyst Ratings: There are mostly holds on the stock with 11 of 18 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 6.34 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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