Monday, August 08, 2022
E.W. Scripps (SSP)
Strong Political Saves The Day
The E.W. Scripps Company (NASDAQ: SSP) is a diversified media company focused on creating a better-informed world. As one of the nation’s largest local TV broadcasters, Scripps serves communities with quality, objective local journalism and operates a portfolio of 61 stations in 41 markets. The Scripps Networks reach nearly every American through the national news outlets Court TV and Newsy and popular entertainment brands ION, Bounce, Defy TV, Grit, ION Mystery, Laff and TrueReal. Scripps is the nation’s largest holder of broadcast spectrum. Scripps runs an award-winning investigative reporting newsroom in Washington, D.C., and is the longtime steward of the Scripps National Spelling Bee. Founded in 1878, Scripps has held for decades to the motto, “Give light and the people will find their own way.”
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
In line Q2 results. The second quarter results were roughly in line with our estimates with revenues of $594.5 million versus our estimate of $603.0 million and adj. EBITDA of $140.2 million versus our estimate of $139.3 million. The biggest variance to our estimates was in the Scripps Networks business, which was adversely affected by weakened National and Direct Response advertising.
Q3 guide is lower than our estimates, but not horrible. We are lowering our Q3 revenue estimate from $662.0 million to $638.5 million, which reflects 15% growth over the prior year comparable period. We are lowering our Q3 adj. EBITDA estimate from $207.5 million to $170.5 million. The revision reflects soft National advertising in its Networks business and weak Core advertising. The company should cycle to moderate expenses in its Network business in Q4. …
This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
