Scripps Networks Interactive Crushes Earnings Estimates

Scripps Networks Interactive (NYSE: SNI  ) reported earnings on May 9. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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.

• Add Scripps Networks Interactive to My Watchlist.