Shares of Entercom Communications (NYSE:ETM) fell on Tuesday, declining as much as 14.4%. By market close, the stock was down about 10.3%.
The stock's decline comes as the radio broadcasting company reported earnings per share that slightly missed the consensus analyst estimate for the key metric.
For its third quarter, Entercom reported revenue of $378.5 million, up from $122.3 million in the year-ago quarter. On a same-station basis, though, revenue in the year-ago quarter was $395.2 million. Entercom's $378.5 million in revenue was slightly ahead of a consensus analyst estimate for revenue of $378 million.
The company's earnings per share for the quarter was $0.26 -- up from $0.09 in the year-ago quarter, but below a consensus analyst estimate for earnings per share of $0.27.
Though the market responded pessimistically to the results, management was optimistic. In the company's third-quarter earnings release, Entercom CEO David Field had this to say:
As we close in on the one year anniversary of our transformational merger with CBS Radio, we are very pleased with our progress and excited about the momentum we are building across multiple growth initiatives.
Looking ahead, Field said Entercom's fourth quarter is on track for growth, "currently pacing up 4%." This view reflects management's optimism for the second half of the year expressed in Entercom's second-quarter earnings release two months ago.
Management also said it expected synergies to drive "solid double digit EBITDA growth in the fourth quarter."