The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Cumulus Media missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins dropped, net margins shrank.
Cumulus Media tallied revenue of $275.4 million. The four analysts polled by S&P Capital IQ foresaw net sales of $293.3 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $132.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.10. The four earnings estimates compiled by S&P Capital IQ predicted $0.06 per share. GAAP EPS of $0.33 for Q3 were 45% lower than the prior-year quarter's $0.60 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.3%, 20 basis points better than the prior-year quarter. Operating margin was 23.4%, 410 basis points worse than the prior-year quarter. Net margin was 20.4%, 2,460 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $304.4 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $1.12 billion. The average EPS estimate is $0.06.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 72 members out of 96 rating the stock outperform, and 24 members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 11 give Cumulus Media a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cumulus Media is buy, with an average price target of $4.00.
- Add Cumulus Media to My Watchlist.