What happened
Shares of radio broadcasting company Entercom Communications (ETM) jumped on Monday. The stock was up 13.3% as of 11:53 a.m. EST.
The stock's gain adds to a sharp rise on Friday, which followed the company's third-quarter results. Further gains on Monday likely reflect continued optimism surrounding Entercom's quarterly performance, as well as some upbeat commentary from Entercom CEO David Field in an interview with Philadelphia Business Journal.
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So what
Entercom reported third-quarter revenue of $386.1 million, up 2% year over year. Non-GAAP (adjusted) earnings per share rose 23% year over year to $0.32. Both metrics were ahead of analysts' average forecasts.
In an interview published by Philadelphia Business Journal on Monday, Field argued that the stock might still be down from a price above $10 in the spring of 2018 because of secular pressure on media stocks overall. In addition, Field said, "a down second quarter" may be weighing on sentiment for the stock. But the CEO believes there's a "disconnect" between the Street's view and the company's actual potential.
Now what
Field said he is excited about the company's recent launch of its RADIO.COM app -- an app that adds DVR-like capabilities to radio. In addition, the company has positioned itself strategically in the podcast market with several acquisitions of podcast companies.
