Of the major publicly traded audio media companies operating in the U.S., Entercom Communications, iHeartMedia and Beasley Media Group have each reported their fourth quarter earnings. Saga Communications will offer its results on March 12.
Where is Townsquare Media? The results, which are expected to be positive, are still forthcoming and due the week of March 15.
While the company’s top executives will be participating in upcoming investor conferences, a top Wall Street blog believes the company’s shares are nearly half of their intrinsic value estimates.
Townsquare on Dec. 15, 2020 offered preliminary estimates for its Q4 results.
And, what CEO Bill Wilson likely has to report will echo what he reported back before Christmas.
Townsquare expects “very strong fourth quarter estimated results that outperformed the expectations” previously shared on the company’s Q3 call.
As of mid-December, Townsquare expects its fourth quarter net revenue to finish be between $107 million and $109 million. This equates to a decline of approximately 2.7% to 4.5%, “materially outperforming our goal,” Wilson said.
Further, Q4 2020 Adjusted EBITDA is expected to and between $27 million and $28 million. This, Wilson added, represents between 8.3% and 12.3% growth year over year. “This far exceeds our previously stated goal (by at least $2 million),” he said.
With Townsquare in late January announcing that it would repurchase a minimum of 10 million of the 12.5 million shares of Class A common stock, shares of Class B common stock and warrants held by funds managed by Oaktree Capital Management L.P. for $6.40 per security, the audio media company is perhaps positioned as one of the leanest and best aligned players in the sector. For Entercom and iHeartMedia, growth is coming in podcasting and digital; radio stations continue to lag, while each company still has considerable debt. At Beasley Media Group, eSports and podcasting are hot spots while broadcast radio is not without its expense struggles.
For Townsquare, its programmatic and local digital platforms, combined with its radio stations, offer investors a different opportunity than the company’s peers. And, that story is likely one Wilson and CFO Stuart Rosenstein will share Thursday (3/4) at the Guggenheim Virtual Broadcasting Symposium.
On Monday, March 8, Wilson and Rosenstein will do it again, this time at the Deutsche Bank Virtual Media, Internet & Telecom Conference.
Management will be available for one-on-one and small group meetings with investors.
With TSQ trading at $10.41, up 25 cents, as of 1:55pm Friday (2/26), Simply Wall Street wonders if the February share price reflects what it is really worth.
The financial blog estimated the stock’s intrinsic value by projecting its future cash flows and then discounting them to today’s value.
“Compared to the [recent] share price of $10.70, the company appears quite good value at a 48% discount to where the stock price trades currently,” Simply Wall St. concludes.
