Media, broadcasting, and digital services company E.W. Scripps (NASDAQ:SSP) beat analysts' expectations in Q4 FY2023, with revenue down 9.6% year on year to $615.8 million. It made a GAAP loss of $3.17 per share, down from its profit of $0.84 per share in the same quarter last year.

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E.W. Scripps (SSP) Q4 FY2023 Highlights:

• Revenue: $615.8 million vs analyst estimates of $602 million (2.3% beat)

• EPS: -$3.17 vs analyst estimates of $0.01 (-$3.18 miss)

• Free Cash Flow of $45.13 million is up from -$8.78 million in the previous quarter

• Gross Margin (GAAP): 18.4%, down from 53.7% in the same quarter last year

• Market Capitalization: $456.1 million

Founded as a chain of daily newspapers, E.W. Scripps (NASDAQ:SSP) is a diversified media enterprise operating a range of local television stations, national networks, and digital media platforms.

Broadcasting

Broadcasting companies have been facing secular headwinds in the form of consumers abandoning traditional television and radio in favor of streaming services. As a result, many broadcasting companies have evolved by forming distribution agreements with major streaming platforms so they can get in on part of the action, but will these subscription revenues be as high quality and high margin as their legacy revenues? Only time will tell which of these broadcasters will survive the sea changes of technological advancement and fragmenting consumer attention.

Sales Growth

A company's long-term performance can indicate its business quality. Any business can enjoy short-lived success, but best-in-class ones sustain growth over many years. E.W. Scripps's annualized revenue growth rate of 13.7% over the last five years was decent for a consumer discretionary business.

Within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends. That's why we also follow short-term performance. E.W. Scripps's recent history shines a dimmer light on the company as its revenue was flat over the last two years.

This quarter, E.W. Scripps's revenue fell 9.6% year on year to $615.8 million but beat Wall Street's estimates by 2.3%. Looking ahead, Wall Street expects sales to grow 10% over the next 12 months, an acceleration from this quarter.

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