Scripps stock gains more than 7% after strong Q2 results and workforce cuts

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E. w. scripps surges 7.29% today

Highlights

Scripps reported record political advertising revenue for the second quarter while incurring a $1.1 billion non-cash impairment on its Networks business.
The company reduced costs by cutting 12% of its workforce and expanded its sports portfolio through new partnership deals.
Scripps stock shows strong short-term momentum with price expected between $3.04 and $4.08, but overbought indicators signal possible exhaustion near resistance at $3.62.

Workforce cuts and impairment deepen loss amid record revenue gains

Scripps reported its second-quarter results, achieving record political advertising revenue and significant cost reductions. The quarter also included a $1.1 billion non-cash impairment charge linked to its Scripps Networks business, contributing to a reported loss of $12.68 per share. The company eliminated 12% of its workforce this year and expanded its sports portfolio through new partnerships.

Anton Kharitonov, expert at Traders Union, emphasizes caution despite the jump in Scripps shares. He notes that record political ad revenues and aggressive cost-cutting are offset by a large impairment and persistent losses. From a technical view, the stock remains under its 200-day average and most momentum indicators signal overbought territory. He warns that downside risks are elevated if support at $3.28 is breached. "Traders should not chase rallies here — underlying weakness and technical exhaustion make sharp pullbacks a real risk."

Viktoras Karapetjanc, expert at Traders Union, sees an improving outlook for Scripps fueled by strong revenue growth and decisive strategic action. He highlights the company's expansion in sports and robust political advertising as clear positives. Market sentiment has shifted, supporting further upward moves if resistance at $3.62 breaks. "With a bullish structure in place and aggressive restructuring underway, I expect Scripps to offer compelling setups for growth-oriented investors."

Jainam Mehta, market strategist, observes a technical tug-of-war in Scripps after its volatile quarter. He notes that short-term momentum is positive, but the negative MACD and mixed broader trend call for caution. Mehta sees a possible breakout above $3.62 as a tactical opportunity, but warns of downside acceleration if $3.28 breaks. "With volatility high, traders can watch for contrarian entries at support or momentum trades if resistance is cleared."

Upward bias persists as short-term momentum clashes with overbought signals

Scripps is trading above its 20-day and 50-day moving averages ($3.01 and $3.05), while remaining just below the 200-day average at $3.62. This setup indicates that short- and medium-term momentum is skewed toward buyers, but the longer-term trend still shows residual bearish pressure. Near-term support stands at $3.28, with resistance at $3.62. Momentum signals present a mixed picture: the MACD is negative and calls for a strong sell, the ADX at 14.18 indicates limited trend strength, and both the RSI at 61.13 and Bull/Bear Power readings confirm overbought conditions. Stochastic RSI and the CCI also suggest a stretched market, while the Awesome Oscillator points to continued upward movement. The stock opened with a downside gap of $0.04 (1.2%) but quickly moved to session highs, with volatility at 11.28%. Strong intraday buying interest is evident, though momentum indicators warn of potential exhaustion.

Earlier, analysts noted that Scripps was grappling with mixed technical signals and unresolved resistance, reflecting a cautious outlook despite sporadic buying interest. The current update confirms lingering overbought conditions and highlights $3.62 as a pivotal resistance level, with a potential breakout above this mark serving as a key upside risk in the sessions ahead.

Source of Data: SSP Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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