Meredith (MDP) To Post Q4 Earnings: What's In The Cards?
Zacks Investment Research | Jul 19, 2017 10:17PM ET
Meredith Corporation (NYSE:MDP) , one of leading media and marketing companies in the U.S. is slated to release fourth-quarter fiscal 2017 results on Jul 27. In the previous quarter, the company’s earnings came in line with the Zacks Consensus Estimate. However, in the trailing four quarters, it has posted an average earnings beat of 3.9%. Let’s see how things are shaping up prior to this announcement.
What to Expect?
The question lingering in investors’ minds now is whether Meredith will be able to post positive earnings surprise in the quarter to be reported. The current Zacks Consensus Estimate for the quarter under review is 96 cents, reflecting a year-over-year decrease of over 11%. We note that the Zacks Consensus Estimate has been stable in the past 60 days. Analysts polled by Zacks expect revenues of $440.6 million compared with $435.8 million reported in the year-ago quarter.
Factors Influencing this Quarter
Strategic endeavors such as increase in digital offerings, the launch of new magazine, The Magnolia Journal, and addition of newscasts across television stations, along with its focus on non-advertising revenue generating avenues such as retransmission fees, brand licensing and e-commerce are likely to drive the top line higher.
To strengthen position, Meredith has launched additional newscasts in the Atlanta, Phoenix, Portland, Nashville, Greenville and Flint/Saginaw markets. The company also renewed licensing program with Wal-Mart Stores (NYSE:WMT), which allows it to showcase 3,000 SKUs of Better Homes & Gardens branded products at 5,000 outlets and on Walmart.com. For the fourth-quarter earnings are anticipated to be in the range of 93–98 cents per share. Local Media Group’s revenue is expected to be up mid-single digits, while that of National Media Group is likely to be down marginally in the final quarter.
However, with advancing technology, the print media is on a decline. Shift to online is likely to put enormous pressure on Meredith’s magazine portfolio. Though the company is expanding digital presence, it will take time to complete the metamorphosis.
Meredith Corporation Price, Consensus and EPS Surprise
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