Pursuits
AMC, Discovery, Scripps Drive Strong Quarter for Media Stocks
- Cable networks benefit from higher ad rates, subscriber fees
- Disney results next week will show if renewed optimism lasts
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AMC Networks Inc., Discovery Communications Inc. and Scripps Networks Interactive Inc. surpassed Wall Street earnings estimates in the first quarter, boosting investor confidence in the TV industry’s ability to adapt to sweeping changes facing the business.
Shares of all three rose Thursday, clawing back some of the losses from last year and early 2016, when companies led by Walt Disney Co. began warning of slower profit growth because their pay-TV networks were losing subscribers to online services and the industry’s cheaper skinny bundles. AMC Networks and Scripps Networks rose as much as 7.6 percent, while Discovery advanced 6.5 percent, their best gains in months.