Meredith Corporation’s MDP fourth-quarter fiscal 2016 adjusted earnings per share of $1.08 outperformed the Zacks Consensus Estimate of $1.04 and were up 14.9% from the year-ago quarter. Notably, this is the 11th straight quarter in which the company has delivered an earnings beat.
For fiscal 2016, adjusted earnings per share came in at $3.30 per share, ahead of the Zacks Consensus Estimate of $3.27.
The company’s results reflect an improvement in the advertising and digital space. Digital traffic increased to more than 80 million monthly unique visitors.
Meredith Corporation (MDP) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany
Digital advertising revenues increased more than 26% in fiscal 2016. Increase in the advertising rate in the Local Media Group supported growth in digital advertising revenues. National media reported a 6% increase in advertising revenues, while Local Media Group non-political advertising revenues were up 5%.
Management provided its earnings per share guidance for fiscal 2017 of approximately $3.50–$3.80. First-quarter fiscal 2017 earnings per share are expected in the range of 70–75 cents, compared with the year-ago level of 52 cents.
The Zacks Consensus Estimate for the first quarter and fiscal 2017 are pegged at 71 cents and $3.69, respectively.
Revenues and Margins
Total revenue for the quarter grew 2.3% to $435.8 million, marginally below the Zacks Consensus Estimate of $437 million. Top-line growth was supported by a 0.2% increase in advertising revenues to $231.6 million, 1.3% growth in circulation revenues to $93.5 million and 8% improvement in Other revenues to $110.8 million.
For fiscal 2016, revenues were up 3.5% year over year to $1,649.6 million. Growth was driven by a 2% increase in advertising revenues to $914.2 million, 4.8% growth in Circulation revenues and 6% improvement in Other revenues to $406.8 million.
For first-quarter fiscal 2017, total revenue is anticipated to be increase in the mid-single digits range.
Adjusted operating profit improved 21.7% year over year to $81.2 million in the quarter, while margin was up 140 basis points to 18.6%.
Segment Details
In the fiscal fourth quarter, Meredith’s National Media Group revenues decreased 0.4% year over year to $294.6 million primarily due to a 4.3% decline in Other revenues to $64.4 million.
On the other hand, advertising revenues and circulation revenues increased 0.4% and 1.3% to $136.8 million and $93.5 million, respectively.
Meredith now expects this segment’s revenues to decline in the low-single digits in first-quarter fiscal 2017.