Noteworthy Stock: Graham Holdings Company (NYSE: GHC)

On Friday, Graham Holdings Company (NYSE: GHC) shares recorded a trading volume 14,451 shares as compared to its average volume of 17,547 shares. The shares price traded between $568.21 and $570.92 during the last trading session above/below with +0.25% at $568.42. The company has 4.38M shares outstanding and market value of 3.039B. Over the one year trading period, the stock has a peak price of $625.45 and its down is recorded at $536.90.

Graham Holdings Company (GHC) recently stated net income attributable to ordinary shares of $46.6M ($8.63 per share) for the second quarter of 2018, contrast to $42.0M ($7.46 per share) for the second quarter of 2017.

Items included in the Company’s net income for the second quarter of 2018:

• $6.2M in interest expense related to the settlement of a mandatorily redeemable no controlling interest ($1.14 per share);
• $11.4M in debt extinguishment costs (after-tax impact of $8.6M, or $1.60 per share);
• $2.6M in net losses on marketable equity securities (after-tax impact of $1.9M or $0.36 per share); and
• $2.3M in non-operating foreign currency losses (after-tax impact of $1.7M, or $0.32 per share).

Items included in the Company’s net income for the second quarter of 2017:

• a $9.2M goodwill and other long-lived asset impairment charge in other businesses (after-tax impact of $5.8M, or $1.03 per share); and
• $3.5M in non-operating foreign currency gains (after-tax impact of $2.2M, or $0.39 per share).

Revenue for the second quarter of 2018 was $672.7M, down 1% from $676.1M in the second quarter of 2017. Revenues declined at the education division, offset by growth at the television broadcasting and manufacturing businesses. The Company stated operating income of $65.6M for the second quarter of 2018, contrast to $49.7M for the second quarter of 2017. The operating income raise is driven by higher earnings at the education, television broadcasting and manufacturing businesses.

For the first six months of 2018, the Company stated net income attributable to ordinary shares of $89.5M ($16.40 per share), contrast to $63.1M ($11.21 per share) for the first six months of 2017. The results for the first six months of 2018 and 2017 were affected by a number of items as described in the following paragraphs. Not Including these items, net income attributable to ordinary shares was $114.9M ($21.08 per share) for the first six months of 2018, contrast to $59.7M ($10.60 per share) for the first six months of 2017. (Refer to the Non-GAAP Financial Information schedule at the end of this release for additional details.)

Items included in the Company’s net income for the first six months of 2018:

• $6.2M in interest expense related to the settlement of a mandatorily redeemable non controlling interest ($1.14 per share);
• $11.4M in debt extinguishment costs (after-tax impact of $8.6M, or $1.60 per share);
• $16.7M in net losses on marketable equity securities (after-tax impact of $12.7M, or $2.30 per share);
• a $4.3M gain on the Kaplan University Transaction (after-tax impact of $1.8M, or $0.33 per share);
• $2.1M in non-operating foreign currency losses (after-tax impact of $1.6M, or $0.30 per share); and
• $1.8M in income tax benefits related to stock compensation ($0.33 per share).

Items included in the Company’s net income for the first six months of 2017:

• a $9.2M goodwill and other long-lived asset impairment charge in other businesses (after-tax impact of $5.8M, or $1.03 per share);
• $5.2M in non-operating foreign currency gains (after-tax impact of $3.3M, or $0.58 per share); and
• $5.9M in income tax benefits related to stock compensation ($1.06 per share).

Revenue for the first six months of 2018 was $1,332.1M, up 6% from $1,258.8M in the first six months of 2017. Revenues raised at the television broadcasting and manufacturing businesses, offset by a decline at the education division. The Company stated operating income of $109.8M for the first six months of 2018, contrast to $60.0M for first six months of 2017. Operating results improved at the education, television broadcasting and manufacturing businesses.

Division Results

Education

Education division revenue totaled $370.0M for the second quarter of 2018, down 4% from $386.5M for the same period of 2017. Kaplan stated operating income of $37.6M for the second quarter of 2018, up 13% from $33.3M for the second quarter of 2017.

For the first six months of 2018, education division revenue totaled $745.5M, down 2% from revenue of $759.4M for the same period of 2017. Kaplan stated operating income of $60.3M for the first six months of 2018, a 41% raise from $42.8M for the first six months of 2017.

Television Broadcasting

Revenue at the television broadcasting division raised 8% to $114.1M in the second quarter of 2018, from $106.1M in the same period of 2017Because of an $8.7M raise in re-transmission revenues and a $3.9M raise in political advertising revenue. Operating income for the second quarter of 2018 raised 3% to $41.1M, from $39.8M in the same period of 2017Because of higher revenues.

Revenue at the television broadcasting division raised 13% to $222.9M in the first six months of 2018, from $197.6M in the same period of 2017. The revenue raise is due primarily to $16.9M in higher re-transmission revenues, $8.6M in 2018 incremental winter Olympics-related advertising revenue at the Company’s NBC stations, and a $6.1M raise in political advertising revenue. Operating income for the first six months of 2018 raised 23% to $81.7M from $66.3M in the same period of 2017,Because of higher revenues.

Return on assets ratio of the Company was 6.80% and return on equity ratio was 11.60% while its return on investment ratio was 8.70%. The volatility in the previous week has experienced by 1.30% and observed of 1.53% in the previous month.85.60% ownership is held by institutional investors while insiders hold ownership of 0.10%.