iHeartMedia (NASDAQ:IHRT) Announces Earnings Results, Misses Estimates By $0.13 EPS

iHeartMedia (NASDAQ:IHRT) released its quarterly earnings results on Monday. The company reported ($0.41) EPS for the quarter, missing the consensus estimate of ($0.28) by ($0.13), Zacks reports. The firm had revenue of $977.24 million during the quarter, compared to analysts’ expectations of $970.15 million.

Here are the key takeaways from iHeartMedia’s conference call:

• Digital Audio continued to lead growth, with revenue up 12.4% and adjusted EBITDA up 14.5% year over year. Podcast revenue increased 20.7% to $162 million, while video podcast distribution through Netflix and Hulu was highlighted as an incremental growth opportunity.
• The Multiplatform Group remained pressured, with revenue down 1.6% and adjusted EBITDA falling to $59 million from $96 million. Management cited macroeconomic uncertainty, including fuel costs, and non-cash co-marketing expenses as key factors, while working to improve broadcast-radio monetization through programmatic platforms.
• iHeart reaffirmed its full-year targets of $800 million adjusted EBITDA and $200 million free cash flow, supported by expected strong political advertising, cost savings, podcast momentum, and roughly $200 million of programmatic revenue. Third-quarter guidance calls for mid-single-digit consolidated revenue growth and $180 million-$220 million of adjusted EBITDA.
• The company ended the quarter with approximately $4.7 billion of net debt and $457 million of liquidity, including $125 million drawn under its ABL facility. Management expects to repay that borrowing by year-end and reduce full-year net leverage to the mid-fives, but the business remains highly leveraged.

iHeartMedia Stock Performance

Shares of IHRT opened at $3.71 on Tuesday. The stock has a 50-day simple moving average of $3.92 and a 200-day simple moving average of $3.83. iHeartMedia has a 1 year low of $1.59 and a 1 year high of $6.56. The stock has a market capitalization of $560.77 million, a PE ratio of -2.02 and a beta of 2.21.

Institutional Investors Weigh In On iHeartMedia

Several institutional investors have recently modified their holdings of the company. Royal Bank of Canada boosted its holdings in shares of iHeartMedia by 67.7% in the 4th quarter. Royal Bank of Canada now owns 8,368 shares of the company’s stock valued at $36,000 after buying an additional 3,378 shares in the last quarter. BNP Paribas Financial Markets lifted its position in iHeartMedia by 42.8% during the 2nd quarter. BNP Paribas Financial Markets now owns 18,655 shares of the company’s stock worth $33,000 after acquiring an additional 5,591 shares during the period. The Manufacturers Life Insurance Company increased its holdings in shares of iHeartMedia by 15.0% in the second quarter. The Manufacturers Life Insurance Company now owns 43,613 shares of the company’s stock valued at $77,000 after purchasing an additional 5,684 shares during the period. Cerity Partners LLC lifted its holdings in shares of iHeartMedia by 26.5% during the fourth quarter. Cerity Partners LLC now owns 29,527 shares of the company’s stock worth $123,000 after purchasing an additional 6,186 shares during the period. Finally, EntryPoint Capital LLC grew its position in iHeartMedia by 28.8% in the 4th quarter. EntryPoint Capital LLC now owns 30,328 shares of the company’s stock valued at $126,000 after buying an additional 6,790 shares during the last quarter. 93.89% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several brokerages recently commented on IHRT. Bank of America cut their price target on shares of iHeartMedia from $6.00 to $5.00 and set a “neutral” rating for the company in a report on Tuesday, July 7th. Weiss Ratings restated a “sell (d-)” rating on shares of iHeartMedia in a research report on Friday, July 17th. Two research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Reduce” and a consensus price target of $4.25.

iHeartMedia Company Profile

iHeartMedia, Inc (NASDAQ: IHRT) is a leading media and entertainment company specializing in radio broadcasting, digital streaming and live events. The company operates more than 860 full-power AM and FM radio stations across the United States, delivering music, news, sports and talk programming to local markets. Through its flagship digital platform, iHeartRadio, the company provides listeners with free and subscription-based access to thousands of live radio stations, curated music playlists and on-demand podcasts.

Originally founded in 1972 as Clear Channel Communications, the business rebranded to iHeartMedia in 2014 to reflect the growing importance of its digital and event-driven offerings.