AMC Networks Q3 revenue beats expectations as price hikes drive streaming business

Reuters11-07
AMC Networks Q3 revenue beats expectations as price hikes drive streaming business

Overview

  • AMC Networks Q3 revenue declines 6% yr/yr but beats analyst expectations

  • Adjusted EPS for Q3 misses analyst estimates

  • Adjusted operating income for Q3 beats analyst expectations

  • Company highlights growth in streaming revenue and strategic partnerships

Outlook

  • AMC Networks expects full-year free cash flow of $250 mln

  • Streaming revenue to become largest domestic revenue source this year

Result Drivers

  • STREAMING GROWTH - Streaming revenue increased 14% due to price hikes and strategic partnerships, becoming the largest domestic revenue source

  • AFFILIATE REVENUE DECLINE - Affiliate revenues fell 13% due to subscriber declines and lower contractual rates

  • CONTENT LICENSING DROP - Content licensing revenues decreased 27% due to timing and availability of deliveries

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$561.74 mln

$549 mln (6 Analysts)

Q3 Adjusted EPS

Miss

$0.18

$0.28 (7 Analysts)

Q3 EPS

$1.38

Q3 Adjusted Operating Income

Beat

$94.45 mln

$66.50 mln (6 Analysts)

Q3 EBIT

$55.52 mln

Q3 Free Cash Flow

$42 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and 4 "sell" or "strong sell"

  • The average consensus recommendation for the broadcasting peer group is "buy."

  • Wall Street's median 12-month price target for AMC Networks Inc is $6.00, about 20.8% below its November 6 closing price of $7.25

  • The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 2 three months ago

Press Release: ID:nGNX96wHqw

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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