Category: Media and Marketing

Research – E.W. Scripps (SSP) – A Surprising Reaction

Posted on by Admin

Tuesday, August 13, 2019

E.W. Scripps (SSP)

Posts A Good Quarter; A Surprising Reaction

The E.W. Scripps Company serves audiences and businesses through a growing portfolio of media brands. Scripps currently has 34 radio stations and will expand to over 50 stations with recently announced acquisitions. In addition to its Television station portfolio, SSP runs an expanding collection of national businesses, including podcasting content and infrastructure, a cable network and digital news business, and national broadcast networks.

Michael Kupinski, Senior Research Analyst, DOR, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • Second quarter overachieves expectations. Second quarter revenues were roughly in line with expectations ($336.7 million versus our $339.7 million), but cash flow (adj. EBITDA) over achieved expectations ($47.6 million versus our $38.2 million estimate). Stronger results in the National Media segment accounted for the variance in our estimates.
  • Third quarter guidance a little better.  The company’s Local Media business appears to be doing slightly better than we thought. This is offset by higher than expected…



    Get full report on Channelchek desktop.


*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – E.W. Scripps (SSP) – Surprising Reaction to a Good Quarter

Posted on by Admin

Second quarter overachieves expectations. Second quarter revenues were roughly in line with expectations ($336.7 million versus our $339.7 million), but cash flow (adj. EBITDA) over achieved expectations ($47.6 million versus our $38.2 million estimate). Stronger results in the National Media segment accounted for the variance in our estimates. 

Third quarter guidance a little better. The company’s Local Media business appears
to be doing slightly better than we thought. This is offset by higher than
expected…





Get full report on Channelchek desktop.

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Harte Hanks (HHS) – Substantial Progress Made

Posted on by Admin

Tuesday, August 13, 2019

Harte-Hanks (HHS)

Substantial Progress Made

Harte-Hanks is a marketing services company that provides multichannel marketing solutions as well as consulting, data analytics, and strategic assessment. The company’s offerings focus on business-to-business, retail, finance, and automotive segments through digital, social, mobile, and print media offerings.

Michael Kupinski, Senior Research Analyst, DOR, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • Second quarter reflects significant cost cutting. While revenues were lighter than expected, the company overachieved on operating cash flow with a adj. EBITDA loss of $1.76 million versus our loss estimate of $5.6 million. Notably, management indicated that not all of the cost cuts were reflected in the quarter.  
     
  • Flowing through a large portion of the upside. We are adjusting our full year 2019 adjusted EBITDA loss estimate from a loss of…




    Get full report on Channelchek desktop.




This Company Sponsored 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 full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – The McClatchy Company (MNI) – Significant Progress Toward Maintaining Cash Flow

Posted on by Admin

Friday, August 9, 2019

The McClatchy Company (MNI)

Significant Progress Toward Maintaining Cash Flow

The McClatchy Co is the third-largest newspaper publisher in the United States, operating 30 dailies and approximately 50 nondaily publications in 29 markets nationwide.

Michael Kupinski, Senior Research Analyst, DOR, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • Overachieves second quarter expectations. While revenues were a little lighter than expected, the company’s earlier cost reductions significantly kicked in. As a result, cash flow from continuing operations (excluding asset sales) was nicely better than expected ($26.3 million versus our $22.6 million estimate). Notably, the company was able to maintain EBITDA margins at 14.7%. 
     
  • Disruption not as bad as feared. The company implemented a number of sales and structural strategies at the company in the second quarter, which potentially…




    Get full report on Channelchek desktop.




This Company Sponsored 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 full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Harte-Hanks (HHS) – With Progress Comes Increased Confidence In Its Turnaround

Posted on by Admin

Friday, August 9, 2019

Harte-Hanks (HHS)

With Progress Comes Increased Confidence In Its Turnaround

Harte-Hanks is a marketing services company that provides multichannel marketing solutions as well as consulting, data analytics, and strategic assessment. The company’s offerings focus on business-to-business, retail, finance, and automotive segments through digital, social, mobile, and print media offerings.

Michael Kupinski, Senior Research Analyst, DOR, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • Good progress. The second quarter results were mixed, but reflected progress on the company’s plan to right size its business, to position the company for profitability, and a return toward revenue and cash flow growth. While revenues were lighter than expected, the company overachieves on operating cash flow, with a significantly lower loss due to significant cost cutting.  
     
  • Management expresses confidence in improving outlook. Management indicated that it believes that the company is on track to have positive EBITDA in the fourth quarter 2019 and will be…




    Get full report on Channelchek desktop.




This Company Sponsored 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 full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Cumulus Media (CMLS) – Favorable Cash Flow Picture Provides Confidence In Debt Reduction Target

Posted on by Admin

Friday, August 9, 2019

Cumulus Media (CMLS)

Favorable Cash Flow Picture Provides Confidence In Debt Reduction Target

CUMULUS MEDIA, Inc. (NASDAQ: CMLS) is a leading audio-first media and entertainment company delivering premium content to over a quarter billion people every month — wherever and whenever they want it. CUMULUS MEDIA engages listeners with high-quality local programming through 428 owned-and-operated stations across 87 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, the Olympics, the GRAMMYS, the American Country Music Awards, and many other world-class partners across nearly 8,000 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. CUMULUS MEDIA provides advertisers with local impact and national reach through on-air, digital, mobile, and voice-activated media solutions, as well as access to integrated digital marketing services, powerful influencers, and live event experiences. CUMULUS MEDIA is the only audio media company to provide marketers with local and national advertising performance guarantees.

Michael Kupinski, Senior Research Analyst, DOR, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • Exceeds expectations. While Q2 revenues were in line with our expectations ($279.7 million versus our $280.4 million estimate), adjusted EBITDA was better ($61.8 million versus our $58.8 million estimate). The results reflected management’s keen eye on costs. 
     
  • Adjusting for Sales and Swaps. Even as we adjust the second half 2019 for asset sales and swaps, we still come to the same adjusted EBITDA number for the year, flowing through the second quarter upside. We are likely to…




    Get full report on Channelchek desktop.




This Company Sponsored 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 full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Gray Television (GTN) – Advertising Appears Resilient

Posted on by Admin

Thursday, August 8, 2019

Gray Television, Inc. (GTN)

Advertising Appears Resilient

Gray Television, Inc. operates as a television broadcast company in the United
States. As of April 6, 2010, it operated 36 television stations in 30 markets, including 17 affiliated with CBS Inc.; 10 affiliated with the National Broadcasting Company, Inc.; 8 affiliated with the American Broadcasting Company (ABC); and 1 affiliated with FOX Entertainment Group, Inc. (FOX).

Michael Kupinski, Senior Research Analyst, DOR, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • Q2 better than expected. Second quarter revenues of $508 million was better than our $504 million estimate and cash flow (adj. EBITDA) was better at $164 million versus our $158 million estimate. 
     
  • Key attributes. Local and Political advertising were better than our expectations and accounted for the largest upside variance in the quarter. These trends appear to…




    Get full report on Channelchek desktop.




*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Tribune Publishing (TPCO) – Another Beat And Raise; Will Investors Take Notice?

Posted on by Admin

Thursday, August 8, 2019

Tribune Publishing Company (TPCO)

Another Beat And Raise; Will Investors Take Notice?

Tribune Publishing Co, formerly Tronc Inc is a print and online media company that publishes various newspapers and websites, such as The Chicago Tribune, Los Angeles Times, Baltimore Sun, San Diego Union-Tribune, and the Orlando Sentinel. The company creates and distribute content across its media portfolio, offering integrated marketing, media, and business services to consumers and advertisers, including digital solutions and advertising opportunities.

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating. 

  • Overachieves second quarter. Revenues were $250.3 million, which was better than our $243.7 million estimate. Cash flow (Adj. EBITDA) beat our expectation ($24.4 million versus our estimate of $20.5 million). The company benefited from a sequential improvement in print advertising trends and strong revenue growth at Best Reviews (up 43%). 
  • Better than expected Q3 guidance. Q3 revenue is expected between $235 mil. and $240 mil., which is better than our $227.9 mil. estimate. In addition, adjusted EBITDA guidance range of…

Get full report on Channelchek desktop.

This Company Sponsored 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 full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Gray Television (GTN) – A Solid Quarter

Posted on by Admin

Wednesday, August 7, 2019

Gray Television, Inc. (GTN)

A Solid Quarter

Gray Television, Inc. operates as a television broadcast company in the United
States. As of April 6, 2010, it operated 36 television stations in 30 markets, including 17 affiliated with CBS Inc.; 10 affiliated with the National Broadcasting Company, Inc.; 8 affiliated with the American Broadcasting Company (ABC); and 1 affiliated with FOX Entertainment Group, Inc. (FOX).

Michael Kupinski, Senior Research Analyst, DOR, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • Second quarter better than expected. Second quarter revenues of $508 million was better than our $504 million estimate and cash flow (adj. EBITDA) was better at $184 million versus our $158 million estimate. 
     
  • Key attributes. Local revenues were better than our expectations in the latest quarter, as well as Political advertising and accounted for the…



    Get full report on Channelchek desktop.




*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Townsquare Media (TSQ) – Hitting a Nice Stride

Posted on by Admin

Wednesday, August 7, 2019

Townsquare Media (TSQ)

Hitting a Nice Stride

Townsquare Media Inc is an entertainment and media company offering digital marketing solutions in the United States and Canada. It owns and operates radio stations, social media properties focusing the small and mid-cap companies. Services offered to the clients include live events, local advertising, digital advertising, e-commerce offerings, few others.

Michael Kupinski, Senior Research Analyst, DOR, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • Over achieves expectations, again. Second quarter revenues of $113.1 million was better than our $109.9 million estimate, beating expectations in all three reporting segments including Marketing Services, Live Events, and Interactive. The company exceeded our cash flow estimate of $27.6 million by a significant 9.2%, coming in at $30.1 million. 
     
  • Digital growth is impressive. The company added 1,100 net subscribers to its Interactive business, an acceleration from the first quarter growth of 850. The company now has…




    Get full report on Channelchek desktop.




This Company Sponsored 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 full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Entravision Communications (EVC) – Will It Make Headway Fixing Digital?

Posted on by Admin

Wednesday, August 7, 2019

Entravision Communications (EVC)

Will It Make Headway Fixing Digital?

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.

Michael Kupinski, Senior Research Analyst, DOR, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • Disappointing quarter. The company missed expectations on weaker than expected revenues, $69.2 million versus our estimate of $72.8 million. The biggest variance from our estimate was in the company’s Digital division, missing our revenue expectation by 12.5%. Second quarter operating cash flow was $12.5 million, lighter than our $13.8 million estimate. 
  • Another tough quarter expected. Management indicated that advertising pacings for the third quarter are soft, anticipating total company revenues to be…




    Get full report on Channelchek desktop.




This Company Sponsored 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 full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Gannett Company (GCI) – Did Gannett Get The Most It Could?

Posted on by Admin

Tuesday, August 6, 2019

Gannett Company (GCI)

Did Gannett Get The Most It Could?

Gannett Co., Inc. operates as a news and information company. It operates in three segments: Publishing, Digital, and Broadcasting.

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

  • Two of the largest publishers to merge. New Media Investment Group (NEWM: not covered) plans to buy Gannett for roughly $1.4 billion in a cash and stock transaction. Upon shareholder approval, Gannett shareholders will receive $6.25 per share in cash and 0.5427 shares of New Media for each GCI share, for a total consideration of $11.62 based on the closing price of NEWM shares on August 5th.
  • Approval appears likely.  We do not foresee regulatory issues or problems with shareholder approval by each company. As such, we anticipate….



    Get full report on Channelchek desktop.




*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Media Quarterly Review Q2 2019

Posted on by Admin

Q2 2019 Media Quarterly Review

Noble Capital Markets

Is It Too Far Out To Bet On Political Advertising?

Most media stocks under-performed the general market in the second quarter, although there were some significant variances in individual stocks (which are discussed later in this report).

The general market as measured by the S&P 500 Index increased 3.8% in the second quarter, with Noble’s market cap weighted TV (+3.2%) and Radio (+3.5) indices finishing in-line with the S&P. Notably, larger cap stocks performed well, while smaller caps significantly under performed.

We believe that investors continue to follow momentum behind companies with significant M&A activity and are unforgiving for companies that miss quarterly expectations. A perfect example is the 27% drop in E.W. Scripps (SSP) shares from highs prior to its first quarter release to near current levels. In our view, at this stage, fundamentals matter. Investors seem unwilling to look too far into the future, even into 2020 when many media companies will get an influx of political advertising. Investors appear to be looking over their shoulders for a potential economic downturn, given the late stage of this economic cycle, now the longest economic expansion in our history. As such, investors seem to be focusing on liquid, large cap names and avoiding debt leveraged companies, which is typical in a late cycle. Positive news will send the stocks…

Download the full newsletter in pdf format

Refer to full newsletter for disclaimers