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AMC Networks (AMCX) Lags Q1 Earnings, Tops Revenues

AMC Networks Inc. AMCX is engaged in producing programming and movie content. It owns and operates various cable televisions. Its programming networks include AMC, IFC, Sundance Channel, WE tv, and IFC films.

AMC Networks’ strength lies in programs with original content for which it holds ownership rights. In this regard, shows like Breaking Bad and Mad Men have been major hits, driving commercial success for the company. Also, Fear the Walking Dead, its spin-off show from the popular The Walking Dead series, has been a runaway hit.

Thus, the rising popularity of original content programs coupled with inclusion of other popular TV shows should rake in more advertisement revenues for the company in the to-be-reported quarter.

On the flip side, severe competitive threat from over-the-top (OTT) online video streaming service providers and other media companies coupled with the recent trend of the bulk of ad revenues skewed toward Internet TV is a factor which may mar the quarter’s performance.

AMC Networks currently carries a Zacks Rank #3 (Hold). The company has generated a positive average earnings surprise of 18.04% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings:  AMC Networks reported weaker-than-expected Q1 earnings. Our consensus adjusted earnings estimate called $1.84 per share while the company posted figure was $1.64 per share. Investors should note that these figures take out stock option expenses.

Revenue:  AMC Networks Cinemark reported total revenue of $706.6 million which surpassed our estimate by over $13.6 million.

Key States to Note:   In the reported quarter, adjusted operating cash flow (AOCF) in the National Networks division was up 10.9% year over year and that of International & Other division was down 10.1% year over year.    

Check back later for our full write up on this AMC Networks earnings report later!  

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