There is a bit of a negative headline vibe driving the equity market right now, yet there is one company out there that has thrown off some positive vibes with its earnings guidance. That company is Meredith Corporation (MDP 63.00, +1.40, +2.3%), which is a media company with reach into broadcast television, print, digital, mobile, and video, and whose largest revenue source is advertising.
Meredith operates two business segments -- local media and national media -- and both segments are benefiting from a stronger-than-expected advertising performance, particularly from digital operations.
The digital activities have surpassed expectations, Meredith said, while other business activities have performed originally as anticipated.
Accordingly, Meredith has been compelled to raise its earnings guidance for the third quarter and fiscal 2017 from the guidance it first provided on January 25.
For the third quarter, Meredith is now projecting earnings per share to range from $0.85 to $0.87 versus its prior guidance range of $0.75 to $0.80. For fiscal 2017, the new outlook calls for earnings per share of $3.85 to $3.90, excluding special items, compared to prior guidance of $3.50 to $3.80.
The low end of the respective guidance ranges is comfortably above analysts' current average expectations. The positive earnings revision has given shares of MDP a boost this morning and for good reason.
As an aside, Meredith has been mentioned as possibly being interested in acquiring Time, Inc. (TIME 19.35, +0.20, +1.0%), and it is thought that any official offer for Time could come this month. That understanding could be capping some of the enthusiasm for Meredith's upbeat guidance, as investors wait to see the terms of any transaction, assuming Meredith steps up with an official offer to acquire Time.
Clearly, though, Meredith's business is doing fine at this point without Time in the mix, and that understanding has availed itself in Meredith's stock price, which is up 38% over the last 52 weeks and trading within striking distance of the all-time high it hit earlier this month.