The 10-second takeaway
For the quarter ended June 30 (Q2), LIN TV missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Margins shrank across the board.
LIN TV reported revenue of $164.3 million. The two analysts polled by S&P Capital IQ expected to see a top line of $167.8 million on the same basis. GAAP reported sales were 36% higher than the prior-year quarter's $121.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.14. The two earnings estimates compiled by S&P Capital IQ anticipated $0.20 per share. Non-GAAP EPS of $0.14 for Q2 were 48% lower than the prior-year quarter's $0.27 per share. (The prior-year quarter included $0.21 per share in earnings from discontinued operations.) GAAP EPS of $0.13 for Q2 were 73% lower than the prior-year quarter's $0.48 per share. (The prior-year quarter included $0.21 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 61.3%, 790 basis points worse than the prior-year quarter. Operating margin was 16.7%, much worse than the prior-year quarter. Net margin was 4.5%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $164.8 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $648.7 million. The average EPS estimate is $0.51.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 50 members out of 82 rating the stock outperform, and 32 members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give LIN TV a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LIN TV is buy, with an average price target of $14.00.
Internet software and mass media are being consumed in radically different ways, on new and increasingly mobile devices. Is LIN TV on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add LIN TV to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.