Movers and SHAKERS
Cumulus Media Inc. (CMLS)
In A Good Spot
CUMULUS MEDIA, Inc. (NASDAQ: CMLS) is a leading audio-first media and entertainment company delivering premium content to over a quarter billion people every month — wherever and whenever they want it. CUMULUS MEDIA engages listeners with high-quality local programming through 428 owned-and-operated stations across 87 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, the Olympics, the GRAMMYS, the American Country Music Awards, and many other world-class partners across nearly 8,000 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. CUMULUS MEDIA provides advertisers with local impact and national reach through on-air, digital, mobile, and voice-activated media solutions, as well as access to integrated digital marketing services, powerful influencers, and live event experiences. CUMULUS MEDIA is the only audio media company to provide marketers with local and national advertising performance guarantees.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q4 results better. Results were better than expected with revenues $245.9 million versus our $235.0 million estimate and cash flow, as measured by adjusted EBITDA, $39.6 million versus our estimate of $25.4 million. The improved results reflected better revenue in Digital and Political than our estimates. The quarter benefited from significant cost reductions, which declined $25 million in the quarter and allowed the company to beat our cash flow estimate.
Q1 pacings in line. Management indicated that Q1 advertising pacings were currently down 20%, but likely will improve in March. The company has a difficult comp in Q1 due to year earlier Political advertising, which was a hefty $4 million. We are maintaining our Q1 revenue and cash flow estimate, which anticipates revenues to be down 18.8% and with modest cash flow of $250,000 ...
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.