UPDATE 2-Meredith third-quarter profit beats Street

Wed Apr 28, 2010 11:21am EDT

* Q3 adj EPS $0.69 vs est $0.65

* Q3 rev $353.3 mln vs est $345 mln

* Sees fiscal 2010 EPS above expectations (Adds details, CEO comments, updates share movement)

April 28 (Reuters) - Magazine publisher and local television station owner Meredith Corp (MDP.N) posted a better-than-expected quarterly profit, helped by growth in advertising revenue, and forecast full year results above the Street.

The company, however, warned that growth was still well below historic levels prior to the recession.

"The marketplace remains very volatile on both a month-to-month and client-by-client basis," said Chief Executive Stephen Lacy.

Shares of the company, which publishes Family Circle and Better Homes and Gardens, fell 5 percent to $35.34 Wednesday on the New York Stock Exchange. They have risen about 21 percent in the last three months.

For the current fourth quarter, Meredith expects advertising revenue to increase 7-8 percent over the prior year.

The company, which also owns local TV stations, sees 2010 earnings of $2.13 to $2.18 per share, excluding special items. Analysts were expecting a profit of $2.10 per share, according to Thomson Reuters I/B/E/S.

In the third quarter, total advertising revenues grew 4 percent.

Net income rose to $33.3 million, or 73 cents a share, from $25.4 million, or 56 cents a share, a year ago. Revenue rose 5 percent to $353.3 million. For the alerts, click [ID: nASA009ZS]

Analysts were expecting earnings of 65 cents a share, excluding items, on revenue of $345 million, according to Thomson Reuters I/B/E/S. (Reporting by Sudipto Ganguly in Bangalore; Editing by Saumyadeb Chakrabarty)

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