NEW YORK (
-- Scripps Networks Interactive
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- The gross profit margin for SCRIPPS NETWORKS INTERACTIVE is rather high; currently it is at 67.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 22.80% significantly outperformed against the industry average.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Media industry and the overall market, SCRIPPS NETWORKS INTERACTIVE's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Media industry average. The net income increased by 38.4% when compared to the same quarter one year prior, rising from $94.35 million to $130.61 million.
- SCRIPPS NETWORKS INTERACTIVE reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SCRIPPS NETWORKS INTERACTIVE increased its bottom line by earning $2.38 versus $1.66 in the prior year. This year, the market expects an improvement in earnings ($2.80 versus $2.38).
- The revenue growth came in higher than the industry average of 4.5%. Since the same quarter one year prior, revenues rose by 33.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
Scripps Networks Interactive, Inc. operates as a lifestyle content and interactive services company in the United States and internationally. The company operates through two segments, Lifestyle Media and Interactive Services. The company has a P/E ratio of 20.7, above the average media industry P/E ratio of 20.2 and above the S&P 500 P/E ratio of 16.7. Scripps Networks Interactive has a market cap of $6.6 billion and is part of the
industry. Shares are down 5.1% year to date as of the close of trading on Monday.
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