What happened

Shares of Entravision Communication (EVC -4.17%) were joining the parade of surging television stocks on Friday, jumping on the company's earnings report and news of an acquisition. As of 1:20 p.m. EST, the stock was up 9.9%.

So what

Revenue increased 7% to $70.3 million, which missed analysts' estimates of $71.8 million, while earnings per share increased from $0.06 to $0.08, matching expectations.

A television with the Entravision logo on it

Image source: Entravision.

Walter Ulloa, CEO of the Spanish-language broadcaster, noted gains in financial performance in all segments, and added, "Looking ahead, we remain well positioned to build on our success in further attracting Latino audiences, expanding our advertiser base and monetizing our reach to the benefit of our shareholders."

Investors seemed to push the stock up on two other news items. First, the company recently completed a reverse auction of broadband spectrum, generating $264 million in proceeds. 

More importantly, the company announced an acquisition of Headway, a digital advertising specialist. Ulloa said the deal "enhances the digital capabilities that Entravision offers to our advertising and marketing partners and our ability to target audiences and consumers." 

He also that it would help the company meet its goal of doubling digital revenue to reach 20% of total revenue.

Now what 

TV stocks have been gaining in recent weeks on optimism for deregulation by the Federal Communications Commission under President Trump. Many analysts expect there to be a flurry of mergers in television broadcasting as caps on market concentration are lifted. That activity could further benefit Entravision especially, as the Spanish-language market has been hot. Don't be surprised if the stock continues its bull run after today.