Versant (NASDAQ:VSNT) Issues Quarterly Earnings Results, Beats Estimates By $0.31 EPS

Key Points

• Versant beat earnings expectations, reporting quarterly EPS of $0.34 versus the $0.03 consensus estimate, while revenue totaled $1.59 billion.
• Management reaffirmed its 2026 outlook for $6.2 billion–$6.45 billion in revenue and $1.9 billion–$2.05 billion in Adjusted EBITDA, with free cash flow now expected to exceed its previous $1.0 billion–$1.2 billion forecast.
• Despite a 4% revenue decline and 7% Adjusted EBITDA drop, Versant cited stronger platforms revenue, favorable distribution renewals, and shareholder returns including a newly announced $100 million accelerated share repurchase.

Versant (NASDAQ:VSNT - Get Free Report) posted its earnings results on Tuesday. The company reported $0.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.03 by $0.31, Zacks reports. The business had revenue of $1.59 billion for the quarter.

Here are the key takeaways from Versant's conference call:

• 2026 outlook reaffirmed, with revenue expected at $6.2 billion–$6.45 billion and Adjusted EBITDA of $1.9 billion–$2.05 billion; free cash flow is now expected to exceed the prior $1.0 billion–$1.2 billion forecast.
• Versant completed four major distribution renewals on favorable terms, with 75% of network subscribers contracted through 2028 or beyond, improving visibility despite ongoing pay-TV subscriber declines.
• Platforms revenue increased 10% year over year, or 17% excluding the SportsEngine divestiture and Full Swing acquisition, led by Fandango ticketing and GolfNow; the company also reported encouraging early results from Fandango AVOD and MS NOW direct-to-consumer.
• Third-quarter revenue fell 4% to $1.59 billion and Adjusted EBITDA declined 7% to $353 million, primarily because of pay-TV pressure and sports-rights timing. Fourth-quarter EBITDA will face higher programming costs from four additional NASCAR races, although management characterized this as a one-time impact.
• Versant returned $457 million to shareholders year to date through dividends and repurchases and announced an additional $100 million accelerated share repurchase for the fourth quarter, supported by approximately $1 billion in cash and an undrawn $750 million revolver.

Versant Trading Up 2.9%

Shares of NASDAQ VSNT opened at $32.34 on Tuesday. Versant has a twelve month low of $27.17 and a twelve month high of $59.00. The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 0.35. The stock has a fifty day simple moving average of $34.37 and a 200-day simple moving average of $36.26. The stock has a market capitalization of $4.49 billion and a PE ratio of 9.29.

Versant Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 22nd. Stockholders of record on Thursday, October 1st were paid a $0.3750 dividend. The ex-dividend date of this dividend was Thursday, October 1st. This represents a $1.50 dividend on an annualized basis and a dividend yield of 4.6%. Versant's payout ratio is presently 43.10%.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on VSNT shares. The Goldman Sachs Group reiterated a "neutral" rating and set a $43.00 price target on shares of Versant in a report on Friday, September 18th. Arete Research upgraded shares of Versant from a "sell" rating to a "neutral" rating and set a $40.00 price objective on the stock in a report on Friday, July 17th. Morgan Stanley began coverage on shares of Versant in a research report on Thursday, October 15th. They issued an "equal weight" rating and a $38.00 target price on the stock. Zacks Research upgraded shares of Versant from a "hold" rating to a "strong-buy" rating in a research report on Friday, October 16th. Finally, TD Cowen lifted their price target on shares of Versant from $35.00 to $39.00 and gave the company a "hold" rating in a research report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $42.29.

About Versant

Versant, Inc NASDAQ: VSNT is a media and entertainment company formed from selected cable television and digital assets formerly owned by Comcast's NBCUniversal division. The company develops, produces, distributes and markets entertainment, news, sports and lifestyle content across television networks and digital platforms.

Versant's portfolio includes USA Network, E!, SYFY, Oxygen, Golf Channel and related digital properties. Its assets also include Fandango and Rotten Tomatoes, which provide movie-ticketing, entertainment information and media-review services.

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