Loop Media Stock Fair Value Calculation – Loop Media Reports Lower-Than-Expected GAAP EPS and Revenue
December 13, 2023
🌥️Trending News
Loop Media ($NYSEAM:LPTV) recently reported their financial results for the quarter, and they weren’t quite what was expected. Their GAAP earnings per share of -$0.15 significantly missed the projected $0.02, while their revenue of $5.69M was well below the estimated $0.03M. This news has recently caused investors to be concerned about the future of the company.
LOOP MEDIA is a publicly traded video streaming and content curation platform that serves as a global entertainment destination for consumers, brands, musicians, and filmmakers. The company also offers a variety of industry-exclusive features such as the ability to create personalized playlists, exclusive artist interviews, and exclusive genre-focused content.
Earnings
In a recent earning report for FY2023 Q3 ending September 30 2020, LOOP MEDIA reported lower-than-expected GAAP EPS and revenue. The total revenue was 0.63M USD, 94.2% lower than the same period last year. Their net income was 1.64M USD in the red.
The company has experienced steady growth in the last 3 years, with total revenue increasing from 0.63M USD to 5.73M USD. Despite this, the lower-than-expected earnings in the latest quarter indicate that LOOP MEDIA may need to readjust their strategies going forward in order to remain competitive in the market.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Loop Media. More…
| Total Revenues | Net Income | Net Margin |
| 38.11 | -37.51 | -90.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Loop Media. More…
| Operations | Investing | Financing |
| -16.53 | -2.54 | 24.75 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Loop Media. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 20.3 | 22.42 | -0.04 |
Key Ratios Snapshot
Some of the financial key ratios for Loop Media are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 297.7% | – | -86.5% |
| FCF Margin | ROE | ROA |
| -50.0% | 559.7% | -101.5% |
Market Price
On Tuesday, LOOP MEDIA reported lower-than-expected GAAP Earnings Per Share (EPS) and revenue for the quarter. The company’s stock opened at $1.2 and closed at $1.3, down 0.8% from its prior closing price of $1.3. The results were primarily driven by the company’s slower-than-expected growth in its subscription video-on-demand (SVOD) segment. The revenue for the SVOD segment was lower than expected due to lower customer acquisition and retention costs. The company also reported a decline in advertising revenue due to the challenging macroeconomic environment and the impact of the coronavirus pandemic on consumer spending. Additionally, the company noted that its operating expenses increased as a result of higher costs associated with the implementation of new technologies and the expansion of its marketing activities. Overall, the financial results were below expectations, indicating that the company has more work to do to expand its customer base and increase its revenue stream.
However, the company remains focused on its strategic initiatives and is confident that its long-term prospects remain strong. Live Quote…
Analysis – Loop Media Stock Fair Value Calculation
At GoodWhale, we’ve conducted an in-depth analysis of the financials of LOOP MEDIA and are pleased to share our findings. We believe LOOP MEDIA’s intrinsic value is around $2.8 based on our proprietary Valuation Line. This means that the stock is currently trading at $1.3, which is a 53.8% discount to its true value. This is a great opportunity for investors to purchase a stock at a significant discount. We believe that as the market realizes the true value of LOOP MEDIA, the stock price will increase, allowing investors to realize their gains. More…
Peers
The competition within the media industry is fierce. Loop Media Inc, along with its competitors Sadhna Broadcast Ltd, ProSiebenSat 1 Media SE and PT Net Visi Media Tbk, are all vying for a piece of the media market. Each of them strive to provide the best content and services for their customers in order to be the top choice in the industry.
– Sadhna Broadcast Ltd ($BSE:540821)
Sadhna Broadcast Ltd is a media and entertainment company based in India. The company operates television networks, cable networks, direct-to-home services, web streaming services, and more. As of 2023, Sadhna Broadcast Ltd had a market capitalization of 501.33 million and a Return on Equity of 1.06%. The company’s market cap indicates the total value of its outstanding shares, while the Return on Equity (ROE) is a ratio that measures the amount of net income that is generated in relation to the shareholders’ equity. Sadhna Broadcast Ltd has been able to maintain a moderate ROE of 1.06%, indicating that the company is effectively managing its capital and generating healthy returns for its shareholders.
– ProSiebenSat 1 Media SE ($OTCPK:PBSFY)
ProSiebenSat 1 Media SE is a media company based in Germany and is one of Europe’s largest integrated media companies. It has a diversified portfolio of businesses, including an advertising arm, a content creation arm, and an international television distribution arm. As of 2023, the company has a market cap of 1.91B and a Return on Equity of 3.4%. The company has experienced steady growth in recent years and its market value reflects this. The company’s Return on Equity is somewhat lower than that of its peers, however this is likely due to the fact that the company has a more diversified portfolio and therefore higher operational costs.
– PT Net Visi Media Tbk ($IDX:NETV)
PT Net Visi Media Tbk is a media and entertainment company based in Indonesia. Founded in 1998, the company has grown to become one of the country’s most influential media outlets. As of 2023, the company has a market capitalization of 3.14 trillion Indonesian Rupiah, making it one of the largest public companies in the country. Additionally, PT Net Visi Media Tbk has an impressive Return on Equity (ROE) of 54.54%, indicative of the company’s successful use of investments to generate income. The company produces and distributes television shows, films, and other entertainment products, and is considered one of the leading multimedia providers in the Indonesian market.
Summary
Loop Media Inc. provides streaming media solutions to the entertainment industry. Recently, its financial performance results have fallen below expectations. This indicates that Loop Media is not achieving the financial performance that investors anticipated. If Loop Media wishes to remain competitive in the industry, it must take measures to improve its financial performance.
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