After looking at the Q2 results for Entercom and listening to management’s Q3 guidance, Wells Fargo Securities analyst Marci Ryvicker has lowered her estimates for Q3. She’s now looking for a slight decline in revenues from a year ago, rather than a slight increase.
“Q3 is currently pacing down low single digits collectively (July was down mid single digits and August is pacing up low single digits). Somewhat encouraging is that auto is showing some improvement, but it is still early,” Ryvicker said of what she hears from the company. “We lower our Q3 estimated revenue by 200 basis points to -1% from +1%, due to the uncertain economic environment and keep our expense growth at about +4%. As a result of these changes, our full year EBITDA declines by 2% but earnings per share (EPS) actually increases by $0.03, to $0.90 from $0.87 due to lower interest,” she wrote.
“Our 2012 estimated EPS declines slightly, to $0.70 from $0.73 as a result of our revenue changes to Q3 2011. We maintain our Market Perform rating and lower our valuation range to $6-8 from $8-10,” the analyst said.