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What: Shares of Russian TV station operator CTC Media
So what: The company behind the CTC and DTV networks now expects revenue to grow 15% in ruble terms, down from an earlier estimate of 20%. The gain would exclude the impact of commissions paid to Video International for sales of ad inventory in Russia last year, the company said in an SEC filing.
Now what: The good news? CTC says adjusted margins should still come in between 34% and 36%. Fair enough. Just don’t take that to mean that the profit forecast -- $1.16 a share, according to Yahoo! Finance -- is safe. A 5% revenue haircut could still have far-reaching consequences. Yet with the stock priced at less than one-fifth the long-term profit growth rate analysts expect, the downside of buying here appears to be minimal. Do you agree? Disagree? Please weigh in using the comments box below.
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Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn’t own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.
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