Movers and SHAKERS
Entravision Communications Corporation (EVC)
A Remarkable Quarter; Raising Price Target
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.
Q4 overachieves expectations. Total company revenues were $171.7 million versus our $140.7 million expectation, driven by strong growth at its recent acquisition of Cisneros, which benefited from strong advertising demand on Facebook in Latin America. Cash flow, as measured by adjusted EBITDA, beat expectations as well, $32.6 million versus our $28.0 million estimate.
Q1 outlook appears strong. Favorable operating momentum at Cisneros appears to be continuing into Q1. While the company purchased Cisneros in October for what was believed to be 8 times cash flow, given the significantly improved fundamentals, the multiple appears to be below 4 times. Television and Radio core advertising trends appear to be improving as well. As such, we are raising our Q1 revenue ...
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.