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Scripps Networks shares climb after sales beat

A scene from "Chopped Junior" on the Food Network.
Source: Food Network
A scene from "Chopped Junior" on the Food Network.

Shares of Scripps Networks Interactive rose Tuesday, after the company reported a revenue beat for the fourth quarter.

The Tennessee-based owner of networks including HGTV and Food Network reported a more than 4 percent rise in year-over-year quarterly sales to $888.7 million, topping the consensus Thomson Reuters estimate of $879.1 million.

For the full year, operating revenues hit a record $3.4 billion, and consolidated ad revenues crossed $2 billion for the first time to a record $2.4 billion, Scripps said.

"We achieved record levels of revenue and significantly improved our earnings," Chief Executive Officer Kenneth Lowe said in a statement. "We increased ratings and engagement with audiences across our linear and digital platforms and expanded our international reach to new markets."

Scripps missed on earnings, though, reporting adjusted earnings of $1.02 per share, 4 cents less than Reuters' estimates and down from $1.35 a share in the fourth quarter of 2015.

The company said the earnings decline was driven by both "tax effects and non-cash write-down of an equity-method investment." Foreign currency transaction exchange losses, primarily due to a stronger U.S. dollar., also contributed to the earnings miss, Scripps said.

Scripps month-to-date price chart

Source: FactSet

Shares briefly rose more than 8 percent, setting a new 52-week high at $82.64. The stock closed slightly below that level, ending the day up 7 percent at $81.50.

With Tuesday's gains, shares of Scripps are now up more than 14 percent for the year, far more than the S&P 500's near 6-percent gain.