E.W. Scripps (SSP) - Get E. W. Scripps Company Class A Report said Tuesday that its second-quarter earnings will hit the upper end of its estimates, with strong growth in TV advertising offsetting weak newspaper revenue.
The media company said earnings in the quarter will be around 83 cents a share, matching analysts' estimates, according to Thomson First Call. The owner of Home & Garden Television and the Food Network previously had given investors a range of 73 cents to 83 cents a share.
"The strength of the national television advertising market and the targeted nature of our networks puts us in good position to show strong results the second half of the year," said Joseph G. NeCastro, senior vice president and chief financial officer. But he also noted there has been some weakness in newspapers, and said, "we expect more of the same for the second half of the year."
Advertising revenue at Scripps' four cable networks is projected to jump 20% to 30% in the second half, while newspaper revenue, excluding the company's Denver papers, is expected to rise 2% to 4% in the period. Scripps reduced profit growth estimates for its Denver operations to $3 million from $6 million, mainly due to a drop in help-wanted advertising.
Scripps also said it will record a $3 million charge in second-quarter results to write down certain investments, which will reduce reported earnings by 3 cents a share.
Shares were up 73 cents, or almost 1%, at $87.05 on Tuesday morning.