Saga Communications (NASDAQ:SGA) Posts Earnings Results, Beats Expectations By $0.33 EPS

Saga Communications (NASDAQ:SGA) issued its quarterly earnings data on Thursday. The company reported $0.15 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.18) by $0.33, Zacks reports. Saga Communications had a positive return on equity of 3.84% and a negative net margin of 8.55%.The firm had revenue of $26.40 million during the quarter, compared to analysts’ expectations of $25.50 million.

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

• Q2 net revenue fell 6.5% year over year to $26.4 million, while station operating expenses rose 5.4% and operating income declined to $623,000. Local, national, and non-traditional revenue all recorded double-digit declines.
• Saga’s blended digital revenue grew 60.8% in Q2 and 76.4% in the first half, while digital’s share of gross revenue increased to 19% from 14% a year earlier. Management said its investments in digital personnel, in-house search capabilities, and fulfillment infrastructure are largely in place.
• Third-quarter revenue is pacing down mid-single digits, excluding political revenue, although management cited improving monthly trends and expects greater productivity from nine newly hired sales managers. The company has $1.1 million of additional political revenue booked for the remainder of the year and sees potential for more election-related spending.
• Saga reported $27.8 million in cash and short-term investments at June 30, repaid its $5 million revolving-credit balance, and terminated the credit agreement for greater flexibility. It continues to return capital through its $0.25 quarterly dividend and has sold or is selling six non-core properties for more than $4 million.
• Management announced a seven-year joint sales partnership with the University of Florida’s College of Journalism and Communications, which it expects to expand its Ocala-Gainesville footprint and create additional traditional and digital media opportunities.

Saga Communications Stock Up 0.5%

Saga Communications stock opened at $9.76 on Friday. Saga Communications has a 1-year low of $8.24 and a 1-year high of $13.50. The business has a fifty day moving average price of $9.03 and a 200-day moving average price of $10.40. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.81 and a quick ratio of 2.81. The stock has a market capitalization of $62.11 million, a price-to-earnings ratio of -7.07 and a beta of -0.10.

Institutional Investors Weigh In On Saga Communications

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SGA. Osaic Holdings Inc. grew its stake in shares of Saga Communications by 256.7% during the second quarter. Osaic Holdings Inc. now owns 3,984 shares of the company’s stock worth $52,000 after acquiring an additional 2,867 shares during the last quarter. LPL Financial LLC acquired a new stake in Saga Communications in the 4th quarter worth approximately $163,000. Bank of America Corp DE boosted its stake in Saga Communications by 30,720.0% in the 3rd quarter. Bank of America Corp DE now owns 16,951 shares of the company’s stock worth $211,000 after purchasing an additional 16,896 shares in the last quarter. Empowered Funds LLC grew its position in Saga Communications by 6.2% during the 1st quarter. Empowered Funds LLC now owns 30,406 shares of the company’s stock worth $379,000 after purchasing an additional 1,769 shares during the last quarter. Finally, Geode Capital Management LLC grew its position in Saga Communications by 3.3% during the 4th quarter. Geode Capital Management LLC now owns 59,371 shares of the company’s stock worth $678,000 after purchasing an additional 1,923 shares during the last quarter. 74.28% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on SGA shares. Weiss Ratings downgraded shares of Saga Communications from a “sell (d+)” rating to a “sell (d)” rating in a report on Wednesday, May 20th. Noble Financial downgraded shares of Saga Communications from a “strong-buy” rating to a “market perform” rating in a research report on Monday, May 11th. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Saga Communications presently has a consensus rating of “Reduce”.

Saga Communications Company Profile

Saga Communications, Inc (NASDAQ: SGA) is an independent radio broadcasting company that owns and operates a portfolio of local radio stations across the United States. Headquartered in Grosse Pointe Farms, Michigan, the company focuses on full‐service radio properties offering a variety of formats, including music, news‐talk and sports programming. In addition to traditional over‐the‐air broadcasts, Saga leverages web streaming and mobile platforms to broaden listener reach and provide advertisers with multimedia opportunities.

Founded in 1985 by Edward J.