E.W. Scripps (NASDAQ:SSP) Posts Quarterly Earnings Results, Beats Estimates By $0.32 EPS
by Renee Jackson · The Cerbat GemE.W. Scripps (NASDAQ:SSP – Get Free Report) announced its quarterly earnings results on Friday. The company reported ($0.20) EPS for the quarter, beating the consensus estimate of ($0.52) by $0.32, Zacks reports. The firm had revenue of $516.87 million for the quarter, compared to analyst estimates of $516.86 million. E.W. Scripps had a negative return on equity of 0.27% and a negative net margin of 4.69%.
Here are the key takeaways from E.W. Scripps’ conference call:
- Scripps says its transformation is driving measurable improvement — net leverage fell to 3.9x and management targets a $125M–$150M EBITDA uplift (with $20M–$30M in-year and ~75M annualized next year), with ~$40M–$50M of one-time costs to achieve those savings.
- Local media delivered strong Q1 results (revenue +5.8%, core advertising +7%) driven by live sports (multiple NHL deals) and an early political ad cycle, and management expects Q2 local media revenue to be up low-single-digits despite seasonal headwinds.
- Scripps Networks faced a notable slowdown (Q1 revenue down 9.5%; Q2 guide down ~10%) citing macro weakness in direct-response advertising and an unexpected Nielsen methodology change that reduced measured OTA/streaming impressions.
- Company is expanding CTV and sports reach — connected TV revenue was up 26% in Q1, it launched the Scripps Sports Network streaming channel and is staking a leadership position in women’s sports rights to drive future ad and audience growth.
- Management is actively optimizing the portfolio and balance sheet: recent station sales generated $123M gross proceeds, term loans have been paid down (~$60M+ YTD), and the revolver maturity was extended to 2029 with $200M commitments.
E.W. Scripps Trading Down 3.2%
NASDAQ:SSP traded down $0.15 on Friday, reaching $4.53. 966,440 shares of the company’s stock were exchanged, compared to its average volume of 622,097. The company has a quick ratio of 1.65, a current ratio of 1.65 and a debt-to-equity ratio of 3.13. The firm has a market capitalization of $403.31 million, a price-to-earnings ratio of -2.42 and a beta of 0.72. The business has a fifty day moving average of $4.17 and a 200-day moving average of $3.81. E.W. Scripps has a 52-week low of $2.02 and a 52-week high of $5.39.
Insider Activity at E.W. Scripps
In related news, major shareholder Manuel E. Granado purchased 10,000 shares of the business’s stock in a transaction on Tuesday, March 10th. The shares were bought at an average price of $4.46 per share, for a total transaction of $44,600.00. Following the acquisition, the insider directly owned 20,000 shares in the company, valued at $89,200. This trade represents a 100.00% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, major shareholder Ellen B. Granado purchased 18,000 shares of the business’s stock in a transaction on Tuesday, March 10th. The shares were bought at an average price of $4.46 per share, for a total transaction of $80,280.00. Following the acquisition, the insider owned 28,000 shares in the company, valued at $124,880. This trade represents a 180.00% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have bought 1,332,085 shares of company stock worth $5,733,766 over the last quarter. 5.24% of the stock is currently owned by insiders.
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently made changes to their positions in SSP. Franklin Resources Inc. acquired a new stake in shares of E.W. Scripps in the 3rd quarter valued at about $30,000. Northwestern Mutual Wealth Management Co. boosted its position in shares of E.W. Scripps by 67.1% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 14,923 shares of the company’s stock valued at $37,000 after purchasing an additional 5,992 shares during the period. NewEdge Advisors LLC acquired a new stake in shares of E.W. Scripps in the 3rd quarter valued at about $42,000. Squarepoint Ops LLC acquired a new stake in shares of E.W. Scripps in the 3rd quarter valued at about $42,000. Finally, Oxford Asset Management LLP acquired a new stake in shares of E.W. Scripps in the 2nd quarter valued at about $46,000. 67.81% of the stock is owned by institutional investors and hedge funds.
Analyst Upgrades and Downgrades
A number of equities research analysts recently weighed in on SSP shares. Wells Fargo & Company raised their price objective on E.W. Scripps from $3.00 to $3.90 and gave the company an “equal weight” rating in a research report on Thursday, January 22nd. Zacks Research upgraded E.W. Scripps from a “strong sell” rating to a “hold” rating in a research report on Tuesday, April 28th. Guggenheim reiterated a “neutral” rating on shares of E.W. Scripps in a research report on Friday, March 6th. Finally, Benchmark boosted their price objective on E.W. Scripps from $8.00 to $10.00 and gave the company a “buy” rating in a research report on Friday, February 27th. One equities research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $6.95.
Check Out Our Latest Analysis on SSP
About E.W. Scripps
The E.W. Scripps Company is a diversified U.S. media organization headquartered in Cincinnati, Ohio. Established in 1878 by Edward Willis Scripps, the company began as a newspaper publisher before expanding into broadcast television, cable networks and digital journalism. Today, Scripps combines a legacy of local news reporting with a growing portfolio of national cable channels and digital platforms.
Scripps operates more than 60 television stations across over 40 markets, delivering local news, weather, sports and entertainment programming to communities in both large and mid-sized U.S.