Entravision Communications (NYSE:EVC) Announces Earnings Results

Key Points

• Entravision beat quarterly estimates, reporting EPS of $0.18 versus $0.07 expected and revenue of $226.3 million versus $162.2 million expected. Revenue rose 88% year over year, and operating income improved to $28.3 million from a year-earlier loss.
• Advertising technology and services drove the growth: ATS revenue climbed 133% to $177.2 million, while operating profit rose 261% to $35.2 million. Management expects ATS revenue growth above 100% year over year in the fourth quarter, though large-customer spending can make results variable.
• Management expects 2026 political media revenue of about $25 million, the low end of its target range and below prior election-year results. The company is also exploring strategic alternatives for its TV business without a Univision affiliation and plans to align media costs with revenue.

Entravision Communications (NYSE:EVC - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $0.18 EPS for the quarter, beating analysts' consensus estimates of $0.07 by $0.11, FiscalAI reports. The business had revenue of $226.31 million for the quarter, compared to analysts' expectations of $162.16 million. Entravision Communications had a net margin of 0.62% and a return on equity of 6.98%.

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

• Entravision reported third-quarter revenue of $226.3 million, up 88% year over year, and operating income of $28.3 million versus an operating loss of $9.1 million. The improvement was driven primarily by its advertising technology and services (ATS) segment.
• ATS revenue rose 133% to $177.2 million and operating profit increased 261% to $35.2 million, supported by more active advertisers and higher revenue per account. Management expects fourth-quarter ATS revenue growth above 100% year over year, while noting results can vary with large customers’ spending.
• Media political revenue is expected to be about $25 million for 2026, at the low end of management’s target range and below the $32 million and $34 million recorded in the prior midterm and presidential election years. Executives cited weaker-than-expected spending in several races, particularly limited Spanish-language spending in the Texas Senate race.
• The company is exploring strategic alternatives for its TV business without a Univision affiliation; its current affiliation extension runs through March 31, 2027. It also agreed to sell its Tampa-area TV stations for $30 million and expects to realign media expenses with revenue to target profitability in 2027.
• Entravision ended the quarter with $90 million in cash and marketable securities, repaid $5 million of debt during the quarter, and paid a $0.05-per-share dividend. Management plans to review capital allocation priorities in early 2027, while maintaining debt reduction and shareholder returns as current priorities through year-end.

Entravision Communications Trading Up 3.1%

NYSE:EVC traded up $0.23 during midday trading on Thursday, reaching $7.50. 4,507,680 shares of the stock traded hands, compared to its average volume of 1,116,355. The company has a fifty day moving average of $7.29 and a 200 day moving average of $6.86. Entravision Communications has a 12 month low of $2.56 and a 12 month high of $13.74. The company has a debt-to-equity ratio of 1.64, a quick ratio of 1.48 and a current ratio of 1.48. The stock has a market capitalization of $692.64 million, a P/E ratio of 364.00 and a beta of 1.75.

Entravision Communications Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th were issued a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date was Wednesday, September 16th. Entravision Communications's dividend payout ratio is currently 2,000.00%.

Insider Transactions at Entravision Communications

In other Entravision Communications news, Director Paul Zevnik sold 35,000 shares of the firm's stock in a transaction on Friday, September 4th. The shares were sold at an average price of $8.40, for a total value of $294,000.00. Following the sale, the director owned 36,100 shares of the company's stock, valued at $303,240. This trade represents a 49.23% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 9.12% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings cut shares of Entravision Communications from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday, October 19th. One investment analyst has rated the stock with a Hold rating. According to data from MarketBeat, the company has a consensus rating of "Hold".

About Entravision Communications

Entravision Communications Corporation NYSE: EVC is a global advertising, media and technology company. The company provides digital advertising solutions through programmatic buying, mobile and connected television advertising, audio, and other digital media channels. Its technology and services help brands reach and engage audiences across multiple platforms.

Entravision also operates and represents media properties, including television and radio assets, with a historical focus on Spanish-language audiences in the United States.

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