Benchmark Raises Price Target on Meredith Corp (MDP) on Cash Flows Outlook

Benchmark is maintaining its Hold rating on shares of Meredith Corp (NYSE: MDP) and is raising its price target on them from $27 to $30 on long-term outlook.

The company released its first quarter results ahead of expectations with $328 million in sales and EPS of $0.48. Management also increased its quarterly dividend by 50 percent and announced a new $100 million share buyback plan. The firm notes these move indicate the company's long-term cash flow outlook despite weak magazine ad revenue.

National Media Group revenues fell 3 percent year over year to $259 million as advertising fell 8 percent to $124 million. Local Media Group revenue fell 9 percent year over year to $69 million.

Management's second quarter guidance was roughly inline with expectations with EPS of $0.65-$0.70, compared to the consensus of $0.67. The company also reaffirmed its fiscal 2012 EPS guidance of $2.40-$2.80, compared to the consensus of $2.62.

For fiscal 2012 and 2013, Benchmark estimates EPS of $2.64 and $3.27.

For more ratings news on Meredith Corp click here and for the rating history of Meredith Corp click here.

Shares of Meredith Corp closed at $27.44 yesterday.

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