While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companie ...

Company Performance - Townsquare Media reported quarterly earnings of $0.35 per share, matching the Zacks Consensus Estimate, but down from $0.46 per share a year ago [1] - The company posted revenues of $115.31 million for the quarter ended September 2024, slightly missing the Zacks Consensus Estimate by 0.14%, and showing a marginal increase from $115.1 million year-over-year [2] - Over the last four quarters, Townsquare has surpassed consensus EPS estimates only once, while it has topped revenue estimates three times [2] Stock Outlook - Townsquare shares have declined approximately 2.8% since the beginning of the year, contrasting with the S&P 500's gain of 24.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.54 on revenues of $121.33 million, and for the current fiscal year, it is $0.97 on revenues of $454.33 million [7] Industry Context - The Broadcast Radio and Television industry, to which Townsquare belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests that the performance of stocks is significantly influenced by the outlook for the industry, with the top 50% of Zacks-ranked industries outperforming the bottom 50% by more than 2 to 1 [8]

Digital Represents 52% of September YTD Total Net RevenueIgnite's Digital Advertising Revenue Growth Accelerates in Q3Repurchased $25 Million of Debt ($36M through October) and $24 Million of Equity in September YTD Period PURCHASE, N.Y., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Townsquare Media, Inc. (NYSE: TSQ) (“Townsquare”, the "Company," "we," "us," or "our") announced today its financial results for the third quarter ended September 30, 2024. “I am pleased to share that Townsquare’s net revenue returned to y ...

Core Insights - Townsquare Media, Inc. will release its third quarter 2024 financial results on November 7, 2024, before market opening [1] - A conference call to discuss these results is scheduled for the same day at 10:00 a.m. Eastern Time [1] Company Overview - Townsquare Media is a community-focused digital media and marketing solutions company with a strong presence in local radio stations outside the top 50 U.S. markets [4] - The company operates a subscription digital marketing services business, Townsquare Interactive, serving approximately 23,575 small and medium-sized businesses (SMBs) [4] - Townsquare Ignite, the company's digital advertising division, includes over 400 local news and entertainment websites and mobile apps, along with a proprietary digital programmatic advertising technology stack [4] - The company owns a portfolio of 349 local terrestrial radio stations across 74 U.S. markets, focusing on local media brands and national music brands [4]

Core Insights - Townsquare Media, Inc. has announced a strategic digital advertising partnership with SummitMedia, expanding its reach in markets that do not overlap with its existing footprint [1][3] - Townsquare's digital advertising solutions, particularly through its Ignite division, now account for over 50% of the company's total revenue and profit, highlighting its significant growth in this area [2] Group 1: Partnership Details - The partnership with SummitMedia will leverage Townsquare's expertise in digital advertising to enhance SummitMedia's digital offerings, particularly through customized, data-driven strategies [3][4] - SummitMedia recognizes Townsquare as a best-in-class partner, aiming to launch a new digital solutions arm called Summit Interactive as part of this collaboration [4] Group 2: Company Overview - Townsquare Media operates a community-focused digital media and marketing solutions business, primarily outside the top 50 U.S. markets, with a portfolio that includes over 400 local news and entertainment websites and 349 local radio stations [5] - The company serves approximately 23,575 small and medium-sized businesses (SMBs) through its subscription digital marketing services, Townsquare Interactive, which includes website design, SEO, and social media management [5] Group 3: SummitMedia Overview - SummitMedia is an integrated broadcasting and digital media company with a strong presence in key U.S. markets, providing targeted advertising campaigns that connect brands with diverse audiences [6]

Core Viewpoint - Townsquare Media (NYSE: TSQ) is positioned as an undervalued stock with a forward dividend yield of 7.32% and strong long-term prospects, primarily driven by its digital business rather than traditional radio [1][2]. Company Overview - Townsquare Media operates three main business units: Townsquare Interactive (digital marketing services), Townsquare IGNITE (programmatic advertising technology), and a portfolio of 349 local radio stations [2]. - The digital segments (Interactive and IGNITE) contributed 52% of overall revenue and 51% of adjusted operating income in the first half of 2024, indicating a shift towards digital revenue generation [2][3]. Recent Performance - Despite year-over-year declines in overall revenue and adjusted operating income, Townsquare's operating performance improved on a quarter-over-quarter basis in Q2 2024 [5][6]. - The company has adjusted its full-year 2024 revenue guidance to between $440 million and $455 million, with adjusted EBITDA expected between $100 million and $105 million [7]. Valuation Insights - TSQ stock trades at a forward EV-to-EBITDA ratio of 6.5 to 6.7, which is considered undervalued compared to peers like Saga Communications, but at a premium to iHeartMedia and Cumulus Media [8]. - A potential valuation adjustment could see TSQ's enterprise value closer to $750 million, leading to a net valuation of approximately $251.9 million or $16.36 per share after accounting for debt and cash [9]. Growth Potential - Townsquare Media has reduced its share count by 7.23% over the last two quarters, indicating a shareholder-friendly approach that could unlock significant value over time [12]. - The company’s digital transformation and potential asset sales, particularly of Townsquare Interactive, could further enhance its market value [12]. Strategic Alternatives - Potential strategic alternatives, such as an asset sale or outright acquisition, could help bridge the valuation gap, with interest from various strategic and financial buyers due to the value proposition of Townsquare's digital assets [12].

Townsquare Media (TSQ) came out with quarterly earnings of $0.14 per share, missing the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -66.67%. A quarter ago, it was expected that this operator of radio stations in small and mid-sized markets would post earnings of $0.06 per share when it actually produced earnings of $0.03, delivering a surprise ...

Core Insights - Townsquare Media, Inc. reported a net revenue of $118.2 million for Q2 2024, a decrease of 2.5% year-over-year, with a net loss of $48.9 million primarily due to non-cash impairment charges [2][9][11] - Digital revenue accounted for 52% of total net revenue in the first half of 2024, with Digital Advertising showing a year-over-year growth of 1% [2][5] - The company has maintained a strong cash position of $29 million and has repurchased $14 million of debt and $22 million of equity in the first half of 2024 [2][13] Financial Performance - Q2 2024 Adjusted EBITDA decreased by 8.3% year-over-year to $26.2 million, while total digital net revenue decreased by 3.8% [5][10] - Subscription Digital Marketing Solutions revenue fell by 12.9% year-over-year, while Digital Advertising revenue increased by 1% [5][37] - For the first six months of 2024, net revenue decreased by 2.9% to $217.9 million, with a net loss of $47.3 million compared to a loss of $4.6 million in the same period last year [11][12] Segment Reporting - The company operates three segments: Subscription Digital Marketing Solutions, Digital Advertising, and Broadcast Advertising [4] - In Q2 2024, Subscription Digital Marketing Solutions revenue was $18.5 million, down 12.9% year-over-year, while Broadcast Advertising revenue was approximately flat, decreasing by only 0.2% [5][37] - Digital Advertising revenue for Q2 2024 was $41.5 million, reflecting a 1% increase from the previous year [5][37] Shareholder Returns - The Board of Directors approved a quarterly cash dividend of $0.1975 per share, reflecting a yield of approximately 7% based on the recent closing price [3] - The company has repurchased 2.2 million shares of common stock at an average price of $10.25 during the first half of 2024 [6][11] Guidance - For Q3 2024, net revenue is expected to be between $114 million and $116 million, with Adjusted EBITDA projected between $25 million and $27 million [7] - Full-year 2024 net revenue is anticipated to be between $440 million and $455 million, with Adjusted EBITDA expected between $100 million and $105 million [7]

Core Insights - Townsquare Media, Inc. reported a net revenue of $118.2 million for Q2 2024, a decrease of 2.5% year-over-year, with a net loss of $48.9 million primarily due to non-cash impairment charges [2][9][10] - Digital revenue accounted for 52% of total net revenue in the first half of 2024, with Digital Advertising showing a year-over-year growth of 1% [2][5] - The company has maintained a strong cash position of $29 million and has repurchased $14 million of debt and $22 million of equity in the first half of 2024 [2][3][13] Financial Performance - Q2 2024 Adjusted EBITDA decreased by 8.3% year-over-year to $26.2 million, while total digital net revenue decreased by 3.8% [5][10][12] - For the first six months of 2024, net revenue decreased by 2.9% to $217.9 million, with Subscription Digital Marketing Solutions revenue down 14.2% [10][11] - The company reported a net loss of $47.3 million for the first half of 2024, compared to a net loss of $4.6 million in the same period last year [11][12] Segment Performance - Subscription Digital Marketing Solutions revenue decreased by 12.9% in Q2 2024, while Digital Advertising revenue increased by 1% [5][37] - Broadcast Advertising revenue was approximately flat, decreasing by only 0.2% year-over-year [5][37] - Total Digital Adjusted Operating Income decreased by 19.4% in Q2 2024, with Subscription Digital Marketing Solutions Adjusted Operating Income down 10.1% [5][10] Capital Management - The Board of Directors approved a quarterly cash dividend of $0.1975 per share, reflecting a yield of approximately 7% based on recent closing prices [3] - The company has repurchased 2.2 million shares of common stock at an average price of $10.25 in the first half of 2024 [6][10] - S&P Global upgraded the rating of Townsquare's Senior Secured Notes from B to B+ in June 2024, citing improved performance and credit metrics [2][10] Guidance - For Q3 2024, net revenue is expected to be between $114 million and $116 million, with Adjusted EBITDA projected between $25 million and $27 million [7] - Full-year 2024 net revenue is anticipated to be between $440 million and $455 million, with Adjusted EBITDA expected between $100 million and $105 million [7]

Core Insights - Townsquare Media, Inc. will release its second quarter 2024 financial results on August 7, 2024, before market opening [2] - A conference call to discuss these results is scheduled for the same day at 8:00 a.m. Eastern Time [2] Company Overview - Townsquare Media is a community-focused digital media and marketing solutions company, primarily operating outside the top 50 U.S. markets [3] - The company owns a subscription digital marketing services business, Townsquare Interactive, which serves approximately 23,300 small and medium-sized businesses (SMBs) [3] - Townsquare Ignite is the company's digital advertising division, featuring over 400 local news and entertainment websites and mobile apps, along with a proprietary digital programmatic advertising technology stack [3] - The company operates a portfolio of 349 local terrestrial radio stations across 74 U.S. markets, including notable local media brands and national music brands [3]