E.W. Scripps Co. (NASDAQ: SSP) reported Q3 EPS of ($0.27), $0.15 worse than the analyst estimate of ($0.12). Revenue for the quarter came in at $350 million versus the consensus estimate of $342.78 million.

Business highlights

• Scripps has delivered financial results that have met or exceeded expectations for the last eight consecutive quarters.
• On Sept. 19, Scripps closed on the acquisition of eight television stations in seven markets being divested by Nexstar Media Group in its transaction with Tribune Media. The acquisitions Scripps completed in 2019 make it the fourth-largest independent local broadcaster, with 60 stations in 42 markets reaching 31% of U.S. TV households and bolstering the company's economic durability.
• Local Media division core advertising revenue, on an adjusted combined basis, rose nearly 4% in the third quarter over Q3 2018.
• National Media division revenue increased 36% to $97.2 million, and segment profit increased 85%, both beating expectations.
• Revenue for podcast industry leader Stitcher was up more than 40%, driven by its owned-and-operated podcasts, including "Conan O'Brien Needs A Friend" and "Getting Curious with Jonathan Van Ness" of the Netflix series "Queer Eye." In mid-October, Stitcher also launched a new O&O show, "Office Ladies", featuring two popular stars of the hit TV sitcom "The Office." It is already a top 10 podcast.
• The newest Katz network, Court TV, went live on former Tribune television stations' multicast channels in late October and is now reaching 90% of U.S. T.V. households. Audiences have responded so enthusiastically to the relaunch of Court TV that, in September, Katz also rebranded its network Escape to Court TV Mystery, with a focus on true-crime programming.

Commenting on recent business highlights, Scripps President and CEO Adam Symson said:

"The third quarter marked the eighth consecutive reporting period in which Scripps has delivered financial results across the company that met or beat expectations, further evidence we are committed to executing our plan to deliver on our operating results while fueling long-term value creation.

"The closing of the Nexstar-Tribune station acquisitions in September was an important milestone as we further reposition Scripps to be a bigger, stronger and more durable company – strengthening our Local Media portfolio to best capture the opportunities coming to us in 2020 while providing excellent return on invested capital.

"In our National Media businesses, we continue to deliver record revenue performance across our businesses, fueled by modest short-term investments that will generate significant long-term value. Our businesses are riding high on a wave of growth in some of the most important emerging media marketplaces, including digital audio and podcasting and over-the-top and over-the-air television. Our strategies to capitalize on the media consumers' changing habits are a complement to our robust local broadcast business while also creating new shareholder value.

"2020 is just on the horizon, bringing the reset of contracts covering about half of our subscriber households and the opportunity to leverage our exceedingly well-positioned political advertising footprint for next year's presidential election. Combined with the moves we have made to improve the operating profile of our company, we expect Scripps to generate significantly higher free cash flow in 2020 than we otherwise would have expected."

For earnings history and earnings-related data on E.W. Scripps Co. (SSP) click here.