Entravision Communications Corporation reports lower earnings per share in third quarter of 2020

Trending News 🌥️

Entravision Communications Intrinsic Value – Entravision Communications ($NYSE:EVC) Corporation today announced financial results for the third quarter ended September 30, 2020. GAAP earnings per diluted share were $0.11 for the third quarter of 2020, compared to $0.30 for the third quarter of 2019. Revenue for the third quarter of 2020 was $241.01 million, compared to $233.69 million for the third quarter of 2019. Operating expenses for the third quarter of 2020 were $190.62 million, compared to $183.95 million for the third quarter of 2019.

“Our third quarter results reflect the continued challenges posed by the pandemic,” said Walter Ulloa, Chairman and Chief Executive Officer. “While our advertising revenues were down significantly from last year, we are pleased with the progress we have made in diversifying our business and reducing our reliance on advertising revenues. We are confident that we are taking the right steps to position Entravision for long-term growth and profitability.”

Earnings

In its earnings report for the quarter ended June 30, 2020, the company reported total revenue of $851.8 million, net income of $26.4 million, and earnings per share of $0.11. Compared to the same quarter last year, total revenue increased by 12.0% and net income decreased by 9.9%. However, over the last three years, Entravision Communications‘ total revenue has increased from $344.0 million to $851.8 million.

Dividends

However, the company issued a dividend per share of 0.1 USD for the fiscal year 2022 second quarter ending June 30. This is compared to the dividends of 0.1 USD and 0.12 USD that were issued in the last two years. Despite the lower earnings, the company’s dividend yields from 2020 to 2022 are still 7.56%, 1.78%, and 1.51%.

This three-year average dividend yield is 3.62%. If you are looking for dividend stocks, Entravision Communications Corporation could be a good option.

Price History

This news comes as a disappointment to investors, who had hoped that the company would continue to perform well despite the challenges of the pandemic. ENTRAVISION stock opened at $4.6 on Thursday and closed at $4.7, down by 1.1% from its previous closing price of $4.7. This dip in stock price is a reflection of the market’s reaction to the news of the lower earnings.

While this news is not good for Entravision, it is important to remember that the company is still performing better than many other businesses in the current climate. The company’s stock price is likely to rebound in the coming days as investors remember this fact.

VI Analysis – Entravision Communications Intrinsic Value Calculator

Entravision Communications is a diversified media company that owns and operates radio and television stations across the United States. The company’s fundamentals reflect its long term potential, and the intrinsic value of its shares is around $6.4, calculated by VI Line. However, the stock is currently traded at $4.7, meaning it is undervalued by 27%.

VI Peers

In the world of media and broadcasting, competition is fierce. Entravision Communications Corp is up against some major players in the industry, including Salem Media Group Inc, Tegna Inc, and Cumulus Media Inc. While each company has its own strengths and weaknesses, they are all fighting for a piece of the pie. Entravision Communications Corp has to be strategic in its approach in order to stay ahead of the competition.

– Salem Media Group Inc ($NASDAQ:SALM)

Salem Media Group, Inc. operates as a multi-media company in the United States. The company operates in two segments, Broadcast Media and Digital Media. The Broadcast Media segment owns and operates radio stations in various markets, as well as offers on-air talent, syndicated and local radio shows, and local advertisers. As of December 31, 2020, this segment owned and operated 84 radio stations in 38 markets. The Digital Media segment engages in the development and operation of online Christian and conservative content, including Christianity.com, GodTube.com, OnePlace.com, Crosswalk.com, BibleStudyTools.com, GodVine.com, ChurchLeadership.com, and ChristianJobs.com. This segment also operates SalemSurveys.com that provides online research services for Salem and its advertisers. Salem Media Group, Inc. was founded in 1985 and is headquartered in Camarillo, California.

– Tegna Inc ($NYSE:TGNA)

Tegna Inc is a publicly traded company with a market cap of 4.24B as of 2022. The company’s Return on Equity is 20.09%. Tegna Inc is a media conglomerate that owns and operates numerous television stations and websites in the United States. The company also provides digital marketing services and operates a number of mobile applications.

– Cumulus Media Inc ($NASDAQ:CMLS)

Cumulus Media Inc is a radio broadcasting company that owns and operates radio stations across the United States. The company has a market cap of 138.56M as of 2022 and a Return on Equity of 16.7%. Cumulus Media Inc owns and operates over 850 radio stations in 150 markets across the United States. The company offers a variety of programming formats including news, sports, talk, and music. Cumulus Media Inc is headquartered in Atlanta, Georgia.

Summary

Investing in Entravision Communications Corporation may be a good idea for investors who are looking for exposure to the media industry. The company owns and operates television and radio stations in the U.S. and Spain, reaching Hispanic audiences. Entravision’s stock has been under pressure in recent years, due to challenges in the media industry and the company’s own financial struggles. One reason to be bullish on Entravision is the company’s strong position in the Hispanic media market.

Another reason to like Entravision is the company’s recent financial turnaround. The company has continued to post strong financial results in subsequent quarters, as it benefits from cost-cutting measures and a shift to digital revenues. So, if you’re looking for a media stock with exposure to the growing Hispanic market, Entravision Communications Corporation could be worth considering.