iHeartMedia (NASDAQ:IHRT) Posts Earnings Results

Key Points

• iHeartMedia reported a quarterly loss of $0.54 per share, missing the $0.28-per-share consensus estimate by $0.26.
• Digital Audio remained the strongest business, with revenue rising 12.4% and podcast revenue increasing 20.7% to $162 million, while the Multiplatform Group faced revenue and EBITDA declines.
• Management reaffirmed its full-year targets of $800 million in adjusted EBITDA and $200 million in free cash flow, although the company remains highly leveraged with approximately $4.7 billion of net debt; analysts maintain a consensus “Reduce” rating.

iHeartMedia (NASDAQ:IHRT - Get Free Report) announced its quarterly earnings results on Monday. The company reported ($0.54) earnings per share for the quarter, missing analysts' consensus estimates of ($0.28) by ($0.26), FiscalAI reports.

Here are the key takeaways from iHeartMedia's conference call:

• Digital Audio continued to lead growth, with revenue up 12.4% and adjusted EBITDA up 14.5% year over year. Podcast revenue increased 20.7% to $162 million, while video podcast distribution through Netflix and Hulu was highlighted as an incremental growth opportunity.
• The Multiplatform Group remained pressured, with revenue down 1.6% and adjusted EBITDA falling to $59 million from $96 million. Management cited macroeconomic uncertainty, including fuel costs, and non-cash co-marketing expenses as key factors, while working to improve broadcast-radio monetization through programmatic platforms.
• iHeart reaffirmed its full-year targets of $800 million adjusted EBITDA and $200 million free cash flow, supported by expected strong political advertising, cost savings, podcast momentum, and roughly $200 million of programmatic revenue. Third-quarter guidance calls for mid-single-digit consolidated revenue growth and $180 million-$220 million of adjusted EBITDA.
• The company ended the quarter with approximately $4.7 billion of net debt and $457 million of liquidity, including $125 million drawn under its ABL facility. Management expects to repay that borrowing by year-end and reduce full-year net leverage to the mid-fives, but the business remains highly leveraged.

iHeartMedia Price Performance

IHRT stock traded down $0.15 during midday trading on Monday, reaching $3.71. 844,073 shares of the company's stock traded hands, compared to its average volume of 945,116. iHeartMedia has a fifty-two week low of $1.59 and a fifty-two week high of $6.56. The business has a 50-day moving average price of $3.94 and a two-hundred day moving average price of $3.83. The company has a market capitalization of $560.77 million, a P/E ratio of -2.02 and a beta of 2.21.

Hedge Funds Weigh In On iHeartMedia

Hedge funds have recently made changes to their positions in the business. BNP Paribas Financial Markets boosted its position in iHeartMedia by 42.8% during the 2nd quarter. BNP Paribas Financial Markets now owns 18,655 shares of the company's stock worth $33,000 after purchasing an additional 5,591 shares during the period. CIBC Bancorp USA Inc. purchased a new position in iHeartMedia in the third quarter valued at about $36,000. Royal Bank of Canada lifted its stake in shares of iHeartMedia by 67.7% during the fourth quarter. Royal Bank of Canada now owns 8,368 shares of the company's stock worth $36,000 after purchasing an additional 3,378 shares in the last quarter. Tower Research Capital LLC TRC boosted its position in shares of iHeartMedia by 341.7% in the second quarter. Tower Research Capital LLC TRC now owns 24,342 shares of the company's stock worth $43,000 after buying an additional 18,831 shares during the period. Finally, Russell Investments Group Ltd. boosted its position in shares of iHeartMedia by 757.0% in the third quarter. Russell Investments Group Ltd. now owns 15,923 shares of the company's stock worth $46,000 after buying an additional 14,065 shares during the period. Hedge funds and other institutional investors own 93.89% of the company's stock.

Analyst Ratings Changes

Several brokerages recently weighed in on IHRT. Bank of America cut their target price on iHeartMedia from $6.00 to $5.00 and set a "neutral" rating on the stock in a research report on Tuesday, July 7th. Weiss Ratings reissued a "sell (d-)" rating on shares of iHeartMedia in a research report on Friday, July 17th. Two analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Reduce" and an average target price of $4.25.

About iHeartMedia

iHeartMedia, Inc NASDAQ: IHRT is a leading media and entertainment company specializing in radio broadcasting, digital streaming and live events. The company operates more than 860 full-power AM and FM radio stations across the United States, delivering music, news, sports and talk programming to local markets. Through its flagship digital platform, iHeartRadio, the company provides listeners with free and subscription-based access to thousands of live radio stations, curated music playlists and on-demand podcasts.

Originally founded in 1972 as Clear Channel Communications, the business rebranded to iHeartMedia in 2014 to reflect the growing importance of its digital and event-driven offerings.

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