Entravision Communications Corp Down 10.31% To $5.74 After Earnings Miss

Entravision Communications Corp (EVC) missed earnings estimates for Q4 2022 this afternoon.

Wall Street earnings per share (EPS) projections for Entravision Communications Corp were at $0.19. The company missed those estimates with an EPS loss of $0.02 per share. The loss of $0.02 per share (which represents a -111% EPS surprise) led to the company's profits falling 115% compared to last year when the firm reported an EPS of $0.13. The decline in Entravision Communications Corp's annual growth rate represents how the business isn't performing well amid current economic conditions.

Consensus analyst estimates were at $261.5 million. The Communication Services company managed to surpass those expectations for its fourth quarter with revenue of $296.3 million, a positive revenue surprise of $34.9 million (13%). The firm managed 27% growth year-over-year due to Entravision Communications Corp reporting quarterly revenue of $233.9 million in its year-ago quarter. Entravision Communications Corp achieved a lower earnings growth rate than revenue, signaling that the business has not been able to improve its profit margin.

The stock is down 10.31% to $5.74 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

The average recommendation from Wall Street analysts was a Strong Buy which may get revised based on this new data.

Trading in the five days leading up to the report earned Entravision Communications Corp a Bearish Sentiment Rank from InvestorsObserver.

Prior to the report, InvestorsObserver gave the stock an overall score of 84. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.

Entravision Communications Corp is a global media company. Its operations encompass integrated marketing and media solutions, comprised of television, radio, and digital properties and data analytics services. The company operates in television broadcasting, radio broadcasting, and digital media segments. It owns and operates more than 45 radio stations in 16 U.S. markets. The radio stations consist of approx 38 FM and 10 AM stations located in Arizona, California, Colorado, Florida, Nevada, New Mexico, and Texas. It also provides digital advertising solutions that allow advertisers to reach online Hispanic audiences worldwide.