Chek the Channels
E.W. Scripps Company (SSP)
Quarterly Preview: Riding Through The Storm
The E.W. Scripps Co. (www.scripps.com) serves audiences and businesses through a growing portfolio of television, print and digital media brands. After approval of its acquisition of two Granite Broadcasting stations later this year, Scripps will own 21 local television stations as well as daily newspapers in 13 markets across the United States. It also runs an expanding collection of local and national digital journalism and information businesses including digital video news service Newsy. Scripps also produces television programming, runs an award-winning investigative reporting newsroom in Washington, D.C., and serves as the longtime steward of one of the nationï¿½s largest, most successful and longest-running educational programs, Scripps National Spelling Bee. Founded in 1879, Scripps is focused on the stories of tomorrow.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Lowering price target due to CoVid impact. Due to lowered expectations for 2020, we are lowering our 12 to 18 month price target from $20 to $12. Our revised target reflects our original target multiple of 11.1 times based on our revised blended 2020/2021 cash flow estimates. We believe that the target price may be conservative should the company rationalize non core broadcast assets, as we expect.
Lower 2020, posting 2021 estimates. We estimate that total company revenue will decrease 6% in Q2, increase 14.4% in Q3, and increase 26.9% in Q4 for total year 2020 revenue of $1.79 billion. These estimates reflect core advertising decline of 36% in Q2, offset by a substantial increase in Retrans revenue. Total company 2020 cash flow is estimated at $308.7 million. In this report, we are posting 2021 revenue of $1.74 billion and...
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.