GET DAILY SIGNALSE.W. Scripps (SSP) Delivers Profit Turnaround in Q3 2026 on Political Advertising Strength
Key Takeaways
- The E.W. Scripps Company (SSP) reported third-quarter 2026 revenue of $544.9 million, up 3.6% year over year but narrowly below consensus estimates of $547.8 million.
- GAAP earnings swung to a profit of $0.21 per share, far exceeding analyst expectations of a $0.10 per-share loss.
- Adjusted EBITDA reached $121.5 million, topping the $115.2 million consensus.
- Political advertising was the standout driver, generating $82.6 million in the quarter versus just $5.5 million a year earlier.
- Operating margin improved to 12.3%, up from 7.2% in the prior-year quarter, as cost controls and restructuring took hold.
- Shares jumped roughly 6.4% immediately following the release, reflecting a broadly positive market response despite the revenue miss.
Why These Results Stand Out
The E.W. Scripps Company's third-quarter 2026 report carries outsized significance because it marks a return to profitability during a pivotal election-advertising cycle. As a local broadcaster and national networks operator, SSP depends heavily on political spending that surges in even-year elections and nearly disappears in off-years. The quarter also serves as a progress check on management's enterprise-wide transformation plan, which pairs expense reductions with a disciplined approach to M&A and debt reduction. With the company working to strengthen its balance sheet and improve its earnings trajectory, investors were watching closely for evidence that cost cuts, sports partnerships, and streaming distribution gains could offset structural declines in traditional television advertising. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Breaking Down the Numbers
SSP reported third-quarter 2026 revenue of $544.9 million, a 3.6% increase from $525.9 million a year earlier but slightly below the $547.8 million consensus. GAAP earnings per share came in at a profit of $0.21, a dramatic improvement from a loss of $0.55 per share in the prior-year quarter and well above analyst expectations of a $0.10 loss. Adjusted EBITDA reached $121.5 million versus a $115.2 million consensus, driven by an $82.6 million contribution from political advertising, compared with $5.5 million in the same period last year. Operating margin expanded to 12.3% from 7.2%, aided by lower segment, shared services, and corporate expenses. Free cash flow was negative $11.6 million, down from positive $6.4 million a year earlier.
Market Reaction and Investor Sentiment
Investors responded positively to the headline results, sending Scripps shares up approximately 6.4% to around $2.95 immediately after the announcement. The market appeared to reward the swing to profitability and the EBITDA beat, even as revenue came in modestly below expectations. Sentiment was further supported by the company's fourth-quarter guidance, which points to strong local media revenue growth as political spending remains elevated through the remainder of the election cycle. Still, the revenue miss and the persistence of negative free cash flow underscored lingering concerns about the company's leverage and the broader secular pressures facing traditional broadcast advertising.
Forward Outlook and Key Factors to Monitor
Looking ahead, Scripps issued fourth-quarter 2026 guidance that investors should watch closely. Local Media revenue is expected to rise in the low-to-mid 40% range, with expenses roughly flat, reflecting the continued tailwind from political advertising and the company's sports strategy. Scripps Networks revenue is projected to decline in the high single digits, with expenses down in the low single digits, while shared services and corporate costs are guided to about $27 million.
Several factors will shape the story from here. First, the sustainability of profitability after the political cycle ends remains a central question, given the sharp contrast between election-year and off-year advertising levels. Second, investors should monitor balance-sheet progress, including leverage reduction and any further asset sales or refinancing activity, as the company prioritizes debt repayment. Finally, the growth of connected TV and sports-related revenue — including women's sports on ION — will be a key signal of whether Scripps can build durable, higher-margin revenue streams beyond the cyclical boost from politics. From what I see, these elements will determine how the story evolves beyond the current cycle.
Tools That Support My Analysis
In my own research process, I rely on Tickeron’s AI Screener to quickly filter opportunities and compare names like SSP against peers using technical patterns, fundamentals, and performance metrics. It helps surface ideas that align with specific criteria without manual effort across thousands of stocks. This kind of structured scanning keeps my workflow efficient when evaluating earnings reports and sector trends.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
SSP's RSI Indicator climbs out of oversold territory
The RSI Indicator for SSP moved out of oversold territory on October 28, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 38 similar instances when the indicator left oversold territory. In 33 of the 38 cases the stock moved higher. This puts the odds of a move higher at 87%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 02, 2026. You may want to consider a long position or call options on SSP as a result. In 77 of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 84%.
The Moving Average Convergence Divergence (MACD) for SSP just turned positive on October 30, 2026. Looking at past instances where SSP's MACD turned positive, the stock continued to rise in 31 of 42 cases over the following month. The odds of a continued upward trend are 74%.
SSP moved above its 50-day moving average on November 04, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +6.75% 3-day Advance, the price is estimated to grow further. Considering data from situations where SSP advanced for three days, in 214 of 264 cases, the price rose further within the following month. The odds of a continued upward trend are 81%.
SSP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SSP declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 84%.
The Aroon Indicator for SSP entered a downward trend on October 29, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 12 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (-0.858) is normal, around the industry mean (3.501). P/E Ratio (-0.209) is within average values for comparable stocks, (112.559). Projected Growth (PEG Ratio) (0.050) is also within normal values, averaging (1.298). Dividend Yield (0.068) settles around the average of (0.045) among similar stocks. P/S Ratio (0.135) is also within normal values, averaging (8.232).
The Tickeron Price Growth Rating for this company is 61 (best 1 - 100 worst), indicating fairly steady price growth. SSP’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 97 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 100 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SSP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 98, placing this stock worse than average.
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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General Information
a publisher of newspapers and operates television stations
Industry Broadcasting
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