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Friday, May 8, 2020
Entravision Communications Corporation (EVC)
Navigating The Crisis With A Boat Load Of Cash
Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network, with television stations in 20 of the nation’s top 50 Hispanic markets. The Company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.
Michael Kupinski, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q1 results better than expected. Revenues were $64.2 million versus our $62.2 million estimate and cash flow (adj. EBITDA) was $9.6 million versus our $7.2 million estimate. The largest variance to our estimates was better-than-expected TV revenues, $39.2 million versus our estimate of $37.4 million.
Q2 pacings appear in line with previously lowered expectations, outlines significant cost reductions. Advertising trends appear in line with our previous expectations. Management outlined aggressive cost cutting measures that is expected to reduce Q2 costs by $6 million. The cost reductions may be kept in place if revenues do not recover, implying $20 million in…
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This Company Sponsors Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst
certification and important disclosures included in the full report.
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