Why E.W. Scripps (SSP) Stock Is Nosediving

Anthony Lee /
2024/05/10 12:31 pm EDT

What Happened:

Shares of media, broadcasting, and digital services company E.W. Scripps (NASDAQ:SSP) fell 21.9% in the afternoon session after company reported first quarter results, with revenue falling short of Wall Street's estimates as its Local Media segment underperformed. On the other hand, E.W. Scripps blew past analysts' operating margin and EPS expectations this quarter. Overall, this was a mixed but weaker quarter for the company.

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What is the market telling us:

E.W. Scripps's shares are somewhat volatile and over the last year have had 64 moves greater than 5%. But moves this big are very rare even for E.W. Scripps and that is indicating to us that this news had a significant impact on the market's perception of the business.

E.W. Scripps is down 53.8% since the beginning of the year, and at $3.64 per share it is trading 66.4% below its 52-week high of $10.82 from August 2023. Investors who bought $1,000 worth of E.W. Scripps's shares 5 years ago would now be looking at an investment worth $168.52.

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