Scripps Networks Interactive (NYSE:SNI) Advertising Growth Down in 4Q

Scripps Networks Interactive (NYSE:SNI) management has let it be known that advertising growth in the fourth quarter wasn't able to match the levels reached in the third quarter.

Barclays says, "At the conference, management cautioned that advertising growth in 4Q would not be as strong as the 19% growth posted in 3Q, due in part to temporary ratings weakness at both the Food Network and HGTV. While news of a sequential deceleration in ad growth was not well-received by the market, it was in line with our expectations as we are modeling 13% Y/Y growth in 4Q. We believe SNI is fully capable of refreshing its programming slate at its core networks, boosting ratings, and delivering 2011 advertising growth ahead of Street expectations. In light of the recent sell-off, we reiterate our Overweight rating and recommend buying shares at current levels. We are also raising our 2011 EPS estimate to $2.70 from $2.58 per share."

Barclays maintains an "Overweight" rating on Scripps Networks Interactive, which closed Thursday at $47.68, down $0.15, or 0.31 percent.