Entravision Communications (NYSE:EVC) Posts Quarterly Earnings Results, Beats Expectations By $0.09 EPS

Entravision Communications (NYSE:EVC) released its quarterly earnings results on Monday. The company reported $0.19 earnings per share for the quarter, beating analysts’ consensus estimates of $0.10 by $0.09, FiscalAI reports. Entravision Communications had a negative net margin of 3.41% and a negative return on equity of 25.31%. The company had revenue of $227.90 million for the quarter, compared to analyst estimates of $121.49 million.

Here are the key takeaways from Entravision Communications’ conference call:

• Advertising Technology & Services drove strong growth: ATS revenue rose 230% year over year to $182.8 million, while operating profit increased 673% to $40 million, supported by higher customer activity, AI investments, and expanded sales coverage.
• ATS growth is expected to moderate: Management does not expect the exceptional second-quarter performance to repeat and currently anticipates sequential revenue decline in Q3, with results potentially volatile because of concentration among larger customers.
• Media remains under pressure: Media revenue fell 1% year over year to $45.1 million and the segment posted a $3.3 million operating loss, as a 19% decline in national advertising outweighed local growth; the TelevisaUnivision affiliation renewal also remains unresolved, though the current agreement runs through year-end 2026.
• Cash generation supports deleveraging and dividends: Entravision ended the quarter with more than $83 million in cash and marketable securities, paid down $5 million of debt, and approved another $0.05-per-share quarterly dividend.

Entravision Communications Stock Performance

EVC stock traded down $0.24 during midday trading on Monday, reaching $11.73. 3,388,455 shares of the company’s stock traded hands, compared to its average volume of 1,517,496. The company has a 50-day moving average price of $10.85 and a two-hundred day moving average price of $6.56. The firm has a market capitalization of $1.08 billion, a PE ratio of -53.32 and a beta of 1.72. The company has a debt-to-equity ratio of 2.19, a quick ratio of 1.40 and a current ratio of 1.40. Entravision Communications has a 52 week low of $1.95 and a 52 week high of $13.74.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on EVC. Wall Street Zen raised shares of Entravision Communications from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Weiss Ratings reissued a “sell (d-)” rating on shares of Entravision Communications in a research report on Wednesday, June 3rd. One investment analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, Entravision Communications currently has a consensus rating of “Sell”.

Insider Activity

In other Entravision Communications news, major shareholder Alexandra Seros sold 685,111 shares of Entravision Communications stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $8.71, for a total transaction of $5,967,316.81. Following the completion of the transaction, the insider owned 8,974,750 shares of the company’s stock, valued at $78,170,072.50. The trade was a 7.09% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Paul A. Zevnik sold 324,686 shares of the stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $9.67, for a total transaction of $3,139,713.62. Following the completion of the sale, the director directly owned 2,107,582 shares in the company, valued at approximately $20,380,317.94. The trade was a 13.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 3,321,690 shares of company stock valued at $28,397,148. 9.12% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. raised its holdings in shares of Entravision Communications by 1.1% in the 3rd quarter. Vanguard Group Inc. now owns 3,336,040 shares of the company’s stock valued at $7,773,000 after acquiring an additional 36,503 shares in the last quarter. State Street Corp increased its position in shares of Entravision Communications by 0.7% in the fourth quarter. State Street Corp now owns 1,413,637 shares of the company’s stock worth $4,142,000 after purchasing an additional 9,597 shares during the last quarter. Bridgeway Capital Management LLC raised its stake in Entravision Communications by 3.7% in the third quarter. Bridgeway Capital Management LLC now owns 998,610 shares of the company’s stock valued at $2,327,000 after purchasing an additional 35,391 shares in the last quarter. Goldman Sachs Group Inc. grew its stake in Entravision Communications by 59.5% in the 4th quarter. Goldman Sachs Group Inc. now owns 775,566 shares of the company’s stock worth $2,272,000 after buying an additional 289,451 shares in the last quarter. Finally, Empowered Funds LLC grew its stake in Entravision Communications by 7.4% in the 1st quarter. Empowered Funds LLC now owns 470,465 shares of the company’s stock worth $988,000 after buying an additional 32,321 shares in the last quarter. 69.46% of the stock is currently owned by hedge funds and other institutional investors.

Entravision Communications Company Profile

Entravision Communications Corporation (NYSE: EVC) is a diversified Spanish-language media and advertising company headquartered in Santa Monica, California. The company develops and distributes multimedia content tailored to Hispanic audiences across the United States, leveraging a combination of traditional broadcasting and digital platforms to reach consumers and marketers seeking to engage this fast-growing demographic.

In its broadcasting segment, Entravision owns and operates more than 50 television stations affiliated primarily with leading Spanish-language networks, as well as over 40 radio stations in key U.S.