AMC Networks Inc. AMCX reported weak financial results in the third quarter of 2016 wherein both the top and the bottom line lagged the Zacks Consensus Estimate.
Third-quarter 2016 net income was $65 million or 91 cents per diluted share compared with $73 million or 99 cents, respectively, in the third quarter of 2015. Third-quarter adjusted earnings per share of $1.01 fell short of the Zacks Consensus Estimate of $1.04.
Quarterly total revenue of $634.6 million was up 0.4% year over year but lagged the Zacks Consensus Estimate of $661 million. National Networks revenues were $525.7 million, up 0.8% year over year. International and Other revenues totaled $114.02 million, down 0.1% year over year.
Quarterly total adjusted operating cash flow (ACOF) was $168.11 million, down 11.8% year over year. National Networks AOCF revenues grossed $162.5 million, down 12.9% and International and Other AOCF revenues totaled $10.9 million, up 62.3%.
Third-quarter operating costs and expenses totaled $517.5 million, compared to $472.9 million in the prior year quarter. Operating income was $117 million, down 26.5% year over year. Operating margin was 22.6% compared with 33.6% in the prior-year quarter.
In the third quarter of 2016, AMC Networks generated $427 million of cash from operations in the nine months ended Sep 30, 2016, reflecting an increase of $126 million from the prior-year period. Free cash flow in the nine-month period was $373 million, highlighting an increase of $124 million from the prior-year period. At the end of the third quarter of 2016, AMC Networks had $682.76 million of cash and cash equivalents and $2,212.2 million of net debt outstanding.
AMC NETWORKS- A Price, Consensus and EPS Surprise
AMC NETWORKS- A Price, Consensus and EPS Surprise | AMC NETWORKS- A Quote
Zacks Rank and Key Picks
AMC Networks currently has a Zacks Rank #4 (Sell).
Meanwhile, here are some companies that have the right combination of elements to post an earnings beat this quarter.
International Business Machines Corporation IBM, with an earnings ESP of +0.20% and a Zacks Rank #3.The company’s earnings surpassed the Zacks Consensus Estimate in all of the previous four quarters.
Verizon Communications Inc. VZ, with an Earnings ESP of +1.11% and a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The company’s earnings beat the Zacks Consensus Estimate in three of the previous four quarters.
Microsoft Corporation MSFT, with an Earnings ESP of +1.30% and a Zacks Rank #3.The company’s earnings surpassed the Zacks Consensus Estimate in three of the previous four quarters.
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