MDP Posts Solid 2Q But 3Q Guidance Is Soft, Citigroup Reports

Meredith Corporation (NYSE: MDP) posted solid 2Q11 results, although 3Q guidance was soft, Citigroup reports.

“EPS of $0.88 met our estimate, was at the top end of guidance ($0.85-$0.88) and was well ahead of $0.83 consensus. Revenue growth was in-line with our estimate, but margin was modestly better. Publishing was better than expected.

“3.2% revenue growth topped our 1.9% estimate on better Integrated Marketing. 15.3% margin beat our 13.8% estimate. Broadcast was a little softer. Revenues growth of 28.8% was a little below our 31.4% estimate, while margin of 39.6% was 110bps below our 40.7% estimate.”

Citigroup said that guidance for 3Q11 of $0.60 to $0.65 is soft on tough comps. “Consensus was at $0.67 while we were at $0.72,” Citigroup adds. “Full year guidance of $2.60 to $2.80 was reiterated as management continues to have limited visibility into client marketing budgets.”

Meredith Corporation currently trades at $33.90.