Martha Stewart Living Omnimedia (MSO) Tops Q4 EPS by 5c

Martha Stewart Living Omnimedia (NYSE: MSO) reported Q4 EPS of $0.12, $0.05 better than the analyst estimate of $0.07. Revenue for the quarter came in at $41.42 million versus the consensus estimate of $39.5 million.

Publishing

Revenues in the fourth quarter of 2014 were $24.6 million, compared to $28.4 million in the prior year's fourth quarter due to lower print and digital advertising revenue offset by a one-time revenue recognition of $2.0 million in connection with the delivery of our subscription list to Meredith. The fourth quarter of 2014 also includes revenue from two issues of Martha Stewart Living delivered in the quarter prior to the transition of publishing operations to Meredith. While total gross digital advertising sales increased in the fourth quarter of 2014 compared to the prior year period, the Company's fourth quarter 2014 results include a smaller amount of digital advertising revenue as a result of the impact of two months of our digital revenue share arrangement with Meredith.

Operating income improved to $3.2 million for the fourth quarter of 2014, compared to an operating loss of $(1.8) million in the fourth quarter of 2013 due to the initial impact of significant cost reductions arising from our partnership with Meredith. In connection with the Meredith partnership, the fourth quarter of 2014 results includes a restructuring charge of $(2.7) million.

Merchandising

Revenues were $15.9 million for the fourth quarter of 2014, as compared to $18.2 million in the prior year's fourth quarter due to the Company's modified agreement with J.C. Penney, fewer product categories with The Home Depot and the expiration of our partnership with Avery, all of which had been previously announced.

Operating income was $11.7 million for the fourth quarter of 2014 as compared to $13.6 million in the fourth quarter of 2013.

Broadcasting

Revenue in the fourth quarter of 2014 was $0.9 million, compared to $0.8 million in the fourth quarter of 2013.

Operating income was $0.1 million for the fourth quarter of 2014 compared to operating income of $0.3 million in the fourth quarter of 2013.

For earnings history and earnings-related data on Martha Stewart Living Omnimedia (MSO) click here.

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