The E.W. Scripps Co. Earnings Cheat Sheet: Swinging to a Loss but Better than Expected

The E.W. Scripps Company (NYSE:SSP) reported its results for the third quarter. E. W. Scripps is a media company with interests in national television networks, newspaper publishing, broadcast television, interactive media and licensing and syndication.

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The E.W. Scripps Company Earnings Cheat Sheet for the Third Quarter

Results: Reported a loss of $10.7 million (19 cents per diluted share) in the quarter. The E.W. Scripps Company had a net income of $6.2 million or 10 cents per share in the year earlier quarter.

Revenue: Fell 8.5% to $168 million from the year earlier quarter.

Actual vs. Wall St. Expectations: SSP reported an adjusted net loss of 9 cents per share. By that measure, the company beat the mean analyst estimate of a loss of 13 cents per share. Analysts were expecting revenue of $168.2 million.

Quoting Management: “We continue to reshape Scripps, improving the company’s short-term and long-term opportunities for growth,” said Rich Boehne, Scripps president and CEO. “We believe local TV stations are both good businesses today and attractive launching pads for the future, which is why during the quarter we agreed to purchase the nine stations now owned by McGraw-Hill Broadcasting. At a purchase price of $212 million, we should show a strong return on investment and gain access to TV and digital media consumers and advertisers in Indianapolis, Denver and San Diego. Plus we picked up a great small-market station in Bakersfield, Calif., and access to the developing Spanish-language market through five Azteca stations in Colorado and California. We’re eager to close the deal and bring these businesses into the Scripps fold.”

Key Stats:

The company beat estimates last quarter after falling short in the previous two quarters. In the second quarter, it missed the mark by 7 cents, and in the first quarter, it fell short by 8 cents.

Revenue has fallen for the past three quarters. In the second quarter, revenue declined 3% to $183 million while the figure fell 9.4% in the first quarter from the year earlier.

Looking Forward: The average estimate for the fourth quarter is steady at 9 cents a share. For the fiscal year, the average estimate has moved from a loss of 11 cents a share to a loss of 18 cents over the last ninety days.

Competitors to Watch: Gannett Co., Inc. (NYSE:GCI), News Corporation (NASDAQ:NWSA), Lee Enterprises, Inc. (NYSE:LEE), Journal Communications, Inc. (NYSE:JRN), The New York Times Company (NYSE:NYT), The McClatchy Company (NYSE:MNI), Media General, Inc. (NYSE:MEG), The Walt Disney Company (NYSE:DIS) and A. H. Belo Corporation (NYSE:AHC).

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

 

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