AMC Networks (AMCX) Q3 Earnings Beat Estimates, Revenues Lag

AMC Networks Inc. (NASDAQ:AMCX) reported mixed financial results in the third quarter of 2017. The bottom line outpaced the Zacks Consensus Estimate while the top line missed.

Net income was $87 million or $1.35 per share compared with $65.4 million or 91 cents per share in the prior-year quarter. However, quarterly adjusted earnings per share of $1.68 surpassed the Zacks Consensus Estimate of $1.15.

Quarterly total revenues of $648 million were increased 2.1% year over year, missing the Zacks Consensus Estimate of $656 million. National Networks revenues were $541.4 million, up 3% year over year. International and Other revenues totaled $112.8 million, down 1.1% year over year.

Quarterly total adjusted operating income (AOI) was $200.4 million, up 19.2% year over year. National Networks AOI grossed $199.7 million, up 22.9%, while International and Other AOI totaled $8.2 million, down 25.1%.

Operating costs and expenses totaled $494.7 million compared with $517.5 million in the prior-year quarter. Operating income was $153.4 million, up a substantial 30.9% year over year. Operating margin was 23.7% compared with 18.5% in the prior-year quarter.

In the first nine months of 2017, AMC Networks generated $273.6 million of cash from operations compared with $426.6 million in the year-ago period. Free cash flow in the reported period was $195.7 million compared with $373.1 million in the prior-year period. At the end of third-quarter 2017, the company had $552.3 million of cash and cash equivalents and $3.150 million of debt outstanding.

AMC Networks operates in the highly competitive broadcast radio and television industry. Its major competitors are CBS Corp. (NYSE:CBS) , Gray Television Inc. (NYSE:GTN) and Entercom Communications Corp. (NYSE:ETM) . AMC Networks currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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