E.W. Scripps (NASDAQ:SSP) Posts Earnings Results, Beats Estimates By $0.32 EPS

Key Points

• E.W. Scripps beat earnings expectations for the quarter, reporting EPS of ($0.20) versus analysts’ estimate of ($0.52). Revenue came in essentially in line at $516.87 million.
• Management said its transformation plan is improving the balance sheet, with net leverage down to 3.9x and a targeted $125 million to $150 million EBITDA lift over time. The company also extended revolver maturity to 2029 and has used station-sale proceeds to pay down debt.
• Results were mixed across segments: local media grew on sports and political advertising, while Scripps Networks weakened due to macro ad softness and a Nielsen methodology change. The company is also pushing growth in connected TV and sports streaming, with CTV revenue up 26% in Q1.

E.W. Scripps (NASDAQ:SSP - Get Free Report) announced its quarterly earnings data on Friday. The company reported ($0.20) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.52) by $0.32, Zacks reports. The company had revenue of $516.87 million during the quarter, compared to the consensus estimate 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 Price Performance

SSP stock traded down $0.15 during midday trading on Friday, hitting $4.53. The company's stock had a trading volume of 966,440 shares, compared to its average volume of 622,097. E.W. Scripps has a 12 month low of $2.02 and a 12 month high of $5.39. 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 company has a 50 day moving average of $4.17 and a two-hundred day moving average of $3.81.

Insider Buying and Selling at E.W. Scripps

In other news, major shareholder Ellen B. Granado acquired 18,000 shares of the firm's stock in a transaction dated Tuesday, March 10th. The shares were acquired at an average cost of $4.46 per share, with a total value of $80,280.00. Following the acquisition, the insider directly owned 28,000 shares of the company's stock, valued at approximately $124,880. The trade was a 180.00% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, major shareholder Anthony S. Granado acquired 6,852 shares of the firm's stock in a transaction dated Monday, March 9th. The shares were purchased at an average cost of $4.43 per share, for a total transaction of $30,354.36. Following the completion of the acquisition, the insider directly owned 41,512 shares in the company, valued at approximately $183,898.16. This represents a 19.77% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders bought 1,332,085 shares of company stock worth $5,733,766. Company insiders own 5.24% of the company's stock.

Institutional Trading of E.W. Scripps

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Franklin Resources Inc. purchased a new stake in E.W. Scripps during the 3rd quarter valued at $30,000. Northwestern Mutual Wealth Management Co. raised its holdings in E.W. Scripps by 67.1% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 14,923 shares of the company's stock valued at $37,000 after buying an additional 5,992 shares during the period. NewEdge Advisors LLC purchased a new stake in E.W. Scripps during the 3rd quarter valued at $42,000. Squarepoint Ops LLC purchased a new stake in E.W. Scripps during the 3rd quarter valued at $42,000. Finally, Oxford Asset Management LLP purchased a new stake in E.W. Scripps during the 2nd quarter valued at $46,000. Hedge funds and other institutional investors own 67.81% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on SSP. Benchmark upped their price target on E.W. Scripps from $8.00 to $10.00 and gave the stock a "buy" rating in a research note on Friday, February 27th. Guggenheim restated a "neutral" rating on shares of E.W. Scripps in a research note on Friday, March 6th. Wells Fargo & Company upped their price target on E.W. Scripps from $3.00 to $3.90 and gave the stock an "equal weight" rating in a research note on Thursday, January 22nd. Finally, Zacks Research upgraded E.W. Scripps from a "strong sell" rating to a "hold" rating in a research note on Tuesday, April 28th. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $6.95.

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.

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