Business

Cumulus Media Inc (NASDAQ:CMLS) Beats Analyst Expectations

Cumulus Media Inc (NASDAQ:CMLS)

Cumulus Media Inc (NASDAQ:CMLS) reported q3 2017 net income of $1.3 million, or $0.04 per share. Earnings, adjusted for debt, came in at $0.06 on revenues of $287.2 million. Those numbers beat Wall St. forecasts that expected the company to post an EPS loss of (-$0.27). Accordingly, CMLS stock gained 12% in today’s session on a volume of 5.6 million – eight times the posted daily average.

Cumulus Media Inc (NASDAQ:CMLS)

Mary Berner, President and Chief Executive Officer of Cumulus Media Inc (NASDAQ:CMLS) said, “As we noted when we announced our preliminary results in October, our strong third quarter performance plainly demonstrates that our operational turnaround plan is working. The entire Cumulus team has shown great commitment to maintaining our momentum. By executing our foundational operating initiatives and continuing to develop growth opportunities, we are confident that we can build on our success despite the challenging industry environment.”

Cumulus Operations

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 market. The company also has approximately 8,200 broadcast radio affiliates and various digital channels.

The Company operates in two reportable segments, the Radio Station Group and Westwood One. The Radio Station Group revenue is derived primarily from the sale of broadcasting time to local, regional and national advertisers. Westwood One  revenue is generated primarily through network advertising.

CMLS Stock

Cumulus Media Inc (NASDAQ:CMLS) shares have been under pressure this year having lost over 68% of their value. In 2014 the company posted sales of $1.26 Billion, followed by $1.17 Billion for 2015, and in 2016 the company posted $1.14 Billion in sales.

Shareholder losses have been substantial as well. In 2015 the per share loss was (-$18.37). That loss marginally improved in 2016 when the company lost (-$17.45) per share. The lone firm that covers CMLS shares rates them as a “Hold”.

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: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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