Friday, March 22, 2019

Cumulus Media (CMLS)

Raising our price target on a simple premise.

Cumulus Media, Inc., a radio broadcasting company, engages in the acquisition, operation, and development of commercial radio stations in mid-size radio markets in the United States. It owns and operates FM and AM radio station clusters that serve mid-sized markets. The company, through its investment in Cumulus Media Partners, LLC, also operates radio station clusters serving large-sized markets.

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

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

• Q4 over delivers. The company over delivered on its Q4 despite the preannouncement for the quarter. Revenues and adjusted EBITDA were better than expected, at $309.2 million and $66.6 million, respectively, compared to our revenue and adjusted EBITDA estimates of $303.7 million and $57.4 million, respectively. The better than expected revenue grow was driven primarily on the strength of its digital business and a lift from political advertising. 
• Q1 shows improvement. Management indicated that advertising pacings in Q1 2019 is improving, better than its preliminary guidance in its preannounced fourth quarter. Rev... 
  
  
  

*Analyst certification and important disclosures included in 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.