MNTN (NYSE:MNTN) Announces Quarterly Earnings Results, Misses Estimates By $0.10 EPS

MNTN (NYSE:MNTN) released its quarterly earnings results on Wednesday. The company reported $0.10 earnings per share for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.10), Zacks reports. MNTN had a return on equity of 18.85% and a net margin of 18.00%. During the same period in the previous year, the firm posted $0.08 earnings per share. The business’s quarterly revenue was up 14.6% compared to the same quarter last year.

Here are the key takeaways from MNTN’s conference call:

• MNTN missed Q3 guidance: revenue was $80.3 million versus $86–$89 million expected, and adjusted EBITDA was $19.9 million versus $22–$25 million. Q4 guidance is $75–$78 million in revenue and $8–$10 million in adjusted EBITDA; full-year revenue guidance was cut to $311–$314 million.
• CEO Tony Weisman attributed the slowdown primarily to sales execution: compensation and organizational changes led to the loss of about 40% of experienced quota-carrying sellers, reducing new-business opportunities. MNTN has changed the plans and hired 16 sellers, but expects the disruption to continue into Q4 while new hires ramp.
• Existing customers continued to spend and expand, with the company’s expansion rate remaining well above 115%; management said the shortfall was concentrated in new customers. MNTN also reported a 79% gross margin and said it continues to win head-to-head pitches at prior rates.
• Despite the revenue shortfall, Q3 revenue grew 15% year over year and adjusted EBITDA rose 24% to $19.9 million, with a 24.8% margin. MNTN ended the quarter with $252 million in cash and no borrowings.

MNTN Trading Up 6.9%

NYSE MNTN traded up $0.67 during trading hours on Wednesday, reaching $10.40. 1,341,520 shares of the company traded hands, compared to its average volume of 598,167. MNTN has a 12 month low of $7.67 and a 12 month high of $14.98. The stock has a market capitalization of $643.90 million, a PE ratio of 14.65 and a beta of 1.17. The company has a 50 day moving average of $10.87 and a two-hundred day moving average of $9.97.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the stock. Evercore set a $22.00 target price on shares of MNTN in a research report on Wednesday, August 5th. Wall Street Zen raised shares of MNTN from a “hold” rating to a “buy” rating in a report on Monday, September 28th. Tigress Financial dropped their price target on shares of MNTN from $26.00 to $22.00 and set a “strong-buy” rating on the stock in a research note on Thursday, August 13th. Weiss Ratings upgraded shares of MNTN from a “sell (d)” rating to a “sell (d+)” rating in a report on Wednesday, August 19th. Finally, Morgan Stanley set a $16.00 price objective on shares of MNTN in a research report on Monday, August 10th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $18.45.

Insider Buying and Selling at MNTN

In other news, major shareholder Baroda Ventures Llc sold 275,115 shares of the company’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $12.75, for a total value of $3,507,716.25. Following the sale, the insider owned 6,375,543 shares in the company, valued at approximately $81,288,173.25. This represents a 4.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Over the last ninety days, insiders have sold 335,555 shares of company stock valued at $4,266,038. 19.60% of the stock is currently owned by insiders.

MNTN Company Profile

MNTN, Inc is an advertising technology company that provides software for planning, launching, measuring and optimizing connected television (CTV) advertising campaigns. Its platform is designed to help businesses use television advertising with the targeting, automation and performance measurement capabilities commonly associated with digital marketing.

The company’s products support campaign creation, audience targeting, media buying and analytics across streaming television environments.