Starz Earnings: Here’s Why Investors Like These Results

Starz (NASDAQ:STRZA) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 6.31%.

Starz Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 59.06% to $0.52 in the quarter versus EPS of $1.27 in the year-earlier quarter.

Revenue: Decreased 3.65% to $517.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations:  Starz reported adjusted EPS income of $0.52 per share. By that measure, the company beat the mean analyst estimate of $0.42. It beat the average revenue estimate of $406.77 million.

Quoting Management: Chris Albrecht, Starz Chief Executive Officer said, “Starz delivered solid operational and financial performance in the second quarter. We achieved a new all-time subscriber high at STARZ with nearly 22 million subscribers. We are also very pleased with the new, multi-year multi-platform distribution agreement with Time Warner Cable. Opportunities exist to grow our premium business with Time Warner Cable, and the subsequent launch of STARZ PLAY and ENCORE PLAY will assist in those efforts. Our plan for original programming is increasing in both quality and scale thanks to the recent greenlight of both ‘Outlander’ and ‘Power,’ with both dramatic series expected to have their STARZ premieres in 2014. With ‘The White Queen’ debuting this month and drawing strong buzz domestically and abroad, we are well positioned to continue momentum with our original programming heading into 2014 where five series are now scheduled to air on our flagship network, led off by ‘Black Sails’ which we have already renewed for a second season.”

Key Stats (on next page)…

Revenue increased 29.57% from $399.32 million in the previous quarter. EPS increased 10.64% from $0.47 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.4 to a profit $0.41. For the current year, the average estimate has moved down from a profit of $1.74 to a profit of $1.72 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More Articles About:   , , ,  

More from The Cheat Sheet