Friday, November 06, 2020

Entravision Communications Corporation (EVC)

An Ugly Duckling Digital Biz Turns Into A Swan; Price Target Raised

Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision's TeleFutura network, with television stations in 20 of the nation's top 50 Hispanic markets. The Company also operates one of the nation's largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Q3 Beats Expectations. Revenues were 11% higher than our estimate, $62.9 million versus our estimate of $56.9 million, on the strength of Political advertising. Full year 2020 Political advertising set to be a record $28 million, well above $16.6 million in 2012. Q4 cash flow exceeded expectations, $16.4 million versus our $10.4 million estimate.

Completes Cisneros acquisition.  The company closed on its 51% interest in Cisneros in October. The digital advertising rep firm provides girth and attractive growth in its Digital segment. Management indicated that the business will make positive EBITDA contributions in Q4 ...

This Company Sponsored 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.