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

AMC Networks Inc. 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.

AMC Networks Inc. Price, Consensus and EPS Surprise

AMC Networks Inc. Price, Consensus and EPS Surprise | AMC Networks Inc. Quote

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. CBS, Gray Television Inc. GTN and Entercom Communications Corp. 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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