Meredith (MDP) Q3 Results Solid, Soft Earnings View Hurts
Zacks Investment Research | May 12, 2019 09:08PM ET
Meredith Corporation (NYSE:MDP) reported third-quarter fiscal 2019 results, wherein earnings and revenues grew year over year. Results gained from robust performances in the National and Local Media Groups. Robust growth in non-political spot advertising in Local Media Group and solid advertising revenues in the National Media Group, along with reduced debt, contributed to the strong quarterly results.
Despite the robust results, the company’s shares dipped 5.7% on May 10 mainly due to the soft bottom-line view. Although the stock has gained 1.5% in the past three months, it underperformed the industry ’s 3.9% growth.
FY19 Outlook
Management raised its sales view for fiscal 2019. However, it lowered the adjusted EBITDA view and also tweaked the guidance for earnings from continuing operations, excluding special items. The company now anticipates total revenues of $3.12-$3.16 billion in fiscal 2019 compared with $3-$3.2 billion mentioned earlier. Revenues for the National Media Group are expected to be $2.26-$2.29 billion while revenues for the Local Media are estimated to be $860-$870 million.
Adjusted EBITDA is expected to be $700-$710 million, down from the previously stated $720-$750 million.
The company expects earnings from continuing operations, excluding special items, to be $204-$212 million in fiscal 2019 compared with previously mentioned $205-$225 million. Earnings per share from continuing operations, excluding special items, are envisioned to be $2.78-$2.95 compared with $2.78-$3.20 stated earlier.
Q3 Highlights
Meredith’s adjusted earnings per share increased 36.9% to $1.52 from $1.11 in the prior-year quarter. Adjusted net income rose 40.8% to $88.4 million in the reported quarter from $62.8 million in the prior-year period.
Meredith Corporation Price, Consensus and EPS Surprise
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