Friday, March 15, 2013

Entravision Communications Beats on Both Top and Bottom Lines

Entravision Communications (NYSE: EVC  ) filed its 10-K on March 11. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Entravision Communications beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew. GAAP earnings per share expanded.

Margins grew across the board.

Revenue details
Entravision Communications booked revenue of $63.8 million. The two analysts polled by S&P Capital IQ expected a top line of $60.8 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $50.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.11. The three earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. Non-GAAP EPS were $0.11 for Q4 against -$0.02 per share for the prior-year quarter. GAAP EPS were $0.09 for Q4 compared to -$0.03 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 61.6%, 700 basis points better than the prior-year quarter. Operating margin was 32.4%, much better than the prior-year quarter. Net margin was 12.1%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $48.8 million. On the bottom line, the average EPS estimate is -$0.01.

Next year's average estimate for revenue is $217.9 million. The average EPS estimate is $0.13.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 89 members out of 103 rating the stock outperform, and 14 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Entravision Communications a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Entravision Communications is buy, with an average price target of $2.70.

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