AMC Networks Earnings Beat Estimates, But Sees Stock Slip

As was the case earlier this week with DreamWorks Animation, the Q4 earnings report for AMC Networks (NASDAQ: AMCX) presented investors with a few surprises…except this time yielded an unexpected result.

The good news is that earnings per share reached $1.23, which is up when compared with the $1.06 mark from a year-ago. That number was also higher than $1.18 estimate analysts had predicted. Yet there’s also bad news because despite higher numbers, the stock fell Thursday in mid-day trading and ended down over 4 points.

The decline is courtesy of a familiar problem that has dogged the network over the last six months. Analysts want to know if AMC can re-stock the shelves so it is not fully dependent on “The Walking Dead?”

Curiously, with the success of “Dead” spin-off, “Fear The Walking The Dead,” and non-“Dead” series “Better Call Saul,” “Humans” and “Into The Badlands,” many believed the network was setting itself up well for the future. Yet with “Dead’s” continued decline in ratings, which to be fair do go up with delayed viewing data included, it's presenting a real question for investors.

It's important to note though that the finale of “Fear” and the introduction of “Badlands,” were accounted for in the Q4 numbers, but that didn’t seem to inspire enough confident among investors. In addition shareholders were spooked to see subscriber counts fall by 200,000 for the network and 500,000 for siblings IFC and Sundance. WeTV and BBC America counts remained even.