Scripps Networks Interactive Earnings: Margin Expansion Driven by Revenue Growth, Profit Rises

S&P 500 (NYSE:SPY) component Scripps Networks Interactive Inc. (NYSE:SNI) reported its results for the third quarter. 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.

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Scripps Networks Interactive Inc. Earnings Cheat Sheet

Results: Net income for Scripps Networks Interactive Inc. rose to $118.4 million (78 cents per share) vs. $98.6 million (65 cents per share) in the same quarter a year earlier. This marks a rise of 20.1% from the year-earlier quarter.

Revenue: Rose 12.4% to $566.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Scripps Networks Interactive Inc. beat the mean analyst estimate of 75 cents per share. It beat the average revenue estimate of $519.2 million.

Quoting Management: “Our positive third quarter results demonstrate in a powerful way the ubiquitous nature of our popular lifestyle brands,” said Kenneth W. Lowe, chairman, president and chief executive officer of Scripps Networks Interactive. “Our networks and related businesses engage millions of media consumers every day, not just on television, but on smart phones, tablets, newsstands and in thousands of retail outlets across America. We’ve established ourselves as clear leaders in our ability to influence consumer purchasing decisions in the home, food and travel categories. And in the process, we’ve created tremendous value for our shareholders,” Lowe said.

Key Stats:

The company has now seen its net income increase for three consecutive quarters. In the second quarter, net income rose 83.9% and in the first quarter, the figure rose 14.3%.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 6 cents in the second quarter, by 13 cents in the first quarter, and by 3 cents in the fourth quarter of the last fiscal year.

The comapny’s revenue has not increased in each of the last two quarters. In the second quarter, revenue increased 12.5% to $601 million from the year-earlier quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past month, the average estimate for the fourth quarter has gone up from 97 cents per share to 98 cents. The average estimate for the fiscal year is $3.37 per share, a rise from $3.32 ninety days ago.

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

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