Cumulus Media Inc (NASDAQ:CMLS) Shares Experience Upside Volatility

Cumulus Media Inc (NASDAQ:CMLS)

Cumulus Media Inc (NASDAQ:CMLS)

Cumulus Media Inc (NASDAQ:CMLS) stock ended the trading day 7.0% higher after the company announced yesterday a profit $5.7 million or $0.19 per share. The normally thinly-traded stock traded at more than four times its average daily volume.

Cumulus Media Stock Chart:

About Cumulus Media Inc.

Cumulus Media Inc (NASDAQ:CMLS), headquartered in Atlanta, GA, owns and operates radio stations in the United States. The company operates under two brands, Radio Station Group and Westwood One. Revenues are generated through the sale of commercial advertising time to local, regional, and national advertisers as well as network advertising. Cumulus creates and broadcasts content through approximately 445 owned-and-operated stations in 90 United States media markets; and approximately 8,200 broadcast radio affiliates and various digital channels.

Cumulus Media Inc. Released Financials

Cumulus Media Inc (NASDAQ:CMLS) reported net revenue of $290.5 million, up 1.2% from Q2 2016. The company reported net income of $5.7 million and Adjusted EBITDA of $67.4 million – up 6.7% from the same period for 2016. For the six months ended June 30, 2017, Cumulus Media posted net revenue of 554.6 million, down 0.2% from the six months ended June 30, 2016. The company had a net loss of $1.7 million and Adjusted EBITDA of $106.1 million which was up 1.0% from the six months ended June 30, 2016.

Mary Berner, President and Chief Executive Officer of Cumulus Media Inc (NASDAQ:CMLS) said, “Our second quarter results provide further evidence of the success of our turnaround strategies as we posted a year-over-year increase in Adjusted EBITDA for the first time in over three years despite what continues to be a tough market environment.”

In early 2014, CMLS shares were trading above $60. However, they have been on a long consistent slide since then. CMLS stock is down over 57% YTD and down almost 85% for the year. Interestingly, as earnings have suffered, sales have been less volatile. In 2014 the company posted a sales figure of $1.26 million, and just two years later the posted sales figure came in at $1.14 million.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Author: Steve Clark

Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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