Scripps Networks Interactive (SNI) Lags In Post-Market Trading

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Scripps Networks Interactive ( SNI) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Scripps Networks Interactive as such a stock due to the following factors:

  • SNI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $64.0 million.
  • SNI is down 6.1% today from today's close.

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More details on SNI:

Scripps Networks Interactive, Inc. develops lifestyle-oriented content for television and the Internet markets in the United States and internationally. It delivers content that focuses on specifically defined topics of interest for audiences and advertisers. The stock currently has a dividend yield of 1%. SNI has a PE ratio of 23.4. Currently there are 5 analysts that rate Scripps Networks Interactive a buy, 1 analyst rates it a sell, and 9 rate it a hold.

The average volume for Scripps Networks Interactive has been 854,000 shares per day over the past 30 days. Scripps Networks Interactive has a market cap of $8.8 billion and is part of the services sector and media industry. The stock has a beta of 1.16 and a short float of 4.7% with 4.18 days to cover. Shares are down 10.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Scripps Networks Interactive as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • SNI's revenue growth has slightly outpaced the industry average of 4.2%. Since the same quarter one year prior, revenues slightly increased by 8.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.66, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with this, the company maintains a quick ratio of 4.69, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has slightly increased to $193.83 million or 7.03% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.41%.
  • The gross profit margin for SCRIPPS NETWORKS INTERACTIVE is currently very high, coming in at 71.17%. Regardless of SNI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SNI's net profit margin of 16.58% compares favorably to the industry average.
  • SCRIPPS NETWORKS INTERACTIVE has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, SCRIPPS NETWORKS INTERACTIVE reported lower earnings of $3.40 versus $4.46 in the prior year. This year, the market expects an improvement in earnings ($4.00 versus $3.40).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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