Getty Images (NYSE:GETY) Posts Quarterly Earnings Results

Getty Images (NYSE:GETY) announced its quarterly earnings data on Monday. The company reported ($0.21) earnings per share (EPS) for the quarter, Zacks reports. The company had revenue of $229.10 million for the quarter, compared to analysts’ expectations of $235.23 million. Getty Images had a negative net margin of 16.24% and a negative return on equity of 25.49%.

Here are the key takeaways from Getty Images’ conference call:

• Negative Sentiment: Q2 revenue fell 2.5% year over year to $229.1 million, while adjusted EBITDA declined 8.4% to $62.3 million. Weakness in iStock and the agency business outweighed growth in Getty Images’ corporate and media operations.
• Negative Sentiment: Liquidity and leverage remain major concerns: free cash flow was negative $122.6 million after a $110.9 million warrant-litigation payment, cash ended the quarter at $51.6 million, and total debt was $2.1 billion. Management has hired Guggenheim Securities to evaluate financing and balance-sheet alternatives.
• Negative Sentiment: Management terminated the proposed Shutterstock merger after spending more than $100 million on professional fees and financing costs. The company also withdrew financial guidance while its capital-structure review continues through the third and potentially fourth quarters.
• Positive Sentiment: Getty Images reported continued momentum in higher-value areas, including 9.2% growth in editorial revenue, more than 350% growth in custom content solutions, and over 15% growth in Unsplash+ subscriptions. Premium Access represented more than 40% of total revenue and had retention of nearly 100%.
• Neutral Sentiment: The company plans to refocus iStock on premium offerings, reduce marketing with substandard returns, rationalize agency resources, and expand AI-related tools, content verification, natural-language search, and partnerships with technology and media platforms.

Getty Images Stock Performance

Shares of NYSE:GETY traded up $0.01 on Wednesday, hitting $0.30. The company’s stock had a trading volume of 2,351,993 shares, compared to its average volume of 4,780,087. Getty Images has a 12 month low of $0.28 and a 12 month high of $3.21. The stock’s 50-day moving average is $0.66 and its two-hundred day moving average is $0.83. The company has a debt-to-equity ratio of 2.13, a quick ratio of 0.76 and a current ratio of 0.76. The company has a market capitalization of $126.11 million, a price-to-earnings ratio of -0.77 and a beta of 2.11.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on GETY shares. Zacks Research raised shares of Getty Images from a “strong sell” rating to a “hold” rating in a report on Tuesday, August 4th. Benchmark reaffirmed a “hold” rating on shares of Getty Images in a research report on Tuesday. Wedbush reissued an “outperform” rating and issued a $7.00 price objective on shares of Getty Images in a report on Tuesday, May 12th. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Getty Images in a report on Friday. One analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $3.92.

Insider Activity at Getty Images

In related news, insider Michael Teaster sold 38,100 shares of the firm’s stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $0.79, for a total transaction of $30,099.00. Following the transaction, the insider owned 488,862 shares in the company, valued at $386,200.98. This trade represents a 7.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Cho Mikael sold 59,604 shares of the stock in a transaction on Monday, June 29th. The shares were sold at an average price of $0.94, for a total value of $56,027.76. Following the transaction, the senior vice president directly owned 121,650 shares of the company’s stock, valued at approximately $114,351. The trade was a 32.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 133,355 shares of company stock valued at $120,542 over the last quarter. Insiders own 12.50% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Cerity Partners LLC acquired a new position in Getty Images in the second quarter worth approximately $32,000. BNP Paribas Financial Markets lifted its stake in shares of Getty Images by 103.2% in the 3rd quarter. BNP Paribas Financial Markets now owns 21,794 shares of the company’s stock valued at $43,000 after purchasing an additional 11,066 shares during the last quarter. Creative Planning bought a new stake in Getty Images in the second quarter worth $75,000. The Manufacturers Life Insurance Company increased its position in Getty Images by 16.1% during the second quarter. The Manufacturers Life Insurance Company now owns 49,458 shares of the company’s stock worth $82,000 after buying an additional 6,856 shares during the last quarter. Finally, Engineers Gate Manager LP bought a new position in Getty Images during the fourth quarter valued at about $91,000. 45.75% of the stock is owned by institutional investors and hedge funds.

Getty Images Company Profile

Getty Images (NYSE: GETY) is a leading global provider of digital visual content, offering an extensive library of stock photography, editorial imagery, video footage and music. The company supplies creative and rights-managed assets to a broad range of industries, including advertising, media, corporate communications and publishing. Through its online platform and licensing services, Getty Images enables customers to search, license and download multimedia content for commercial and editorial use.

Founded in 1995 by Mark Getty and Jonathan Klein, Getty Images pioneered the aggregation of photographic archives into a centralized, digital marketplace.