AMC Networks Inc. (AMCX:US), the cable- programming company behind “Mad Men” and “The Walking Dead,” rose the most in four months after profit and sales topped estimates.
AMC shares climbed 8.5 percent to $52.57 at the close in New York, its biggest one-day gain since July 2, after the company released third-quarter results. The stock has risen 40 percent this year and is trading at its highest level since Cablevision Systems Corp. (CVC:US) spun off the company in June 2011.
AMC posted a 17 percent gain in revenue, boosted by the licensing of its shows to digital services such as Netflix Inc. (NFLX:US) AMC saw advertising sales jump 9.1 percent, helped by ratings at its most-watched show, “The Walking Dead,” a post-apocalyptic drama about a zombie outbreak.
Third-quarter earnings were 51 cents a share. That topped the 37 cents predicted by analysts, according to data compiled by Bloomberg. Revenue was $332.1 million, exceeding the average projection of $287.4 million.
AMC’s operating cash flow decreased 11 percent to $110 million, impaired by a lack of affiliate revenue and an increase in litigation expenses from a dispute with Dish Network Corp. (DISH:US), which refused to carry New York-based AMC’s four cable networks -- AMC, WE TV, IFC and Sundance Channel -- citing low ratings.
AMC claimed Dish had pulled the networks in response to a breach of contract lawsuit stemming from 2008. Dish settled the lawsuit last month, paying AMC and Cablevision Systems Corp. $700 million while agreeing to again carry the networks.
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