AMC Networks (AMCX) Misses Q2 Earnings, Beats Revenues

AMC Networks Inc. (NASDAQ:AMCX) reported mixed financial results in the second quarter of 2016. While revenues outpaced the Zacks Consensus Estimate, net earnings missed the same.

GAAP net income was $77.2 million or $1.05 per share compared with $83 million or $1.14 per share in the year-ago quarter. Second-quarter adjusted earnings per share of $1.14 were well short of the Zacks Consensus Estimate of $1.33.

Quarterly total revenue of $684.8 million was up 13.9% year over year and ahead of the Zacks Consensus Estimate of $678 million. National Networks revenues were $572.6 million, up 17.2% year over year. International and Other revenues were $118.3 million, up 4.8% year over year.

Quarterly total adjusted operating cash flow (ACOF) was $211.3 million, up 10.4% year over year. National Networks AOCF was $206.3 million, up 13% and International and Other AOCF was $8.2 million, down 4.7%.

Second-quarter operating costs and expenses totaled $506.8 million, up 14.6% year over year. Operating income was $178 million, up 12.1% year over year. Operating margin was 26% compared with 26.4% in the prior-year quarter.

In the first half of 2016, AMC Networks generated $229.6 million of cash from operations compared with $190.2 million in the year-ago period. Free cash flow in the reported period was $196.4 million compared with $154 million in the year-ago period. At the end of the second quarter of 2016, AMC Networks had $643.5 million of cash and cash equivalents and $2,334.1 million of net debt outstanding.

Zacks Rank & Stocks to Consider

AMC Networks currently has a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry include CBS Corp. (NYSE:CBS) , Liberty Broadband Corp. (NASDAQ:LBRDA) and Liberty LiLAC Group (NASDAQ:LILA) . All three stocks currently carry a Zacks Rank #2 (Buy).