MNTN (NYSE:MNTN) Shares Down 20.5% After Earnings Miss

Key Points

• Shares plunged 20.5% intraday to about $9.04 after MNTN reported an EPS miss of $0.11 vs. $0.12 expected, even though revenue beat at $73.7M (up 14.2% YoY).
• Trading volume was light (≈299,684 shares, down ~61% from average) and the company still reports a negative net margin (-2.22%) and a negative PE (-5.83) with a market cap around $586M.
• Analysts remain broadly favorable (consensus "Moderate Buy" with an average target of $22.36) but several firms have cut price targets recently; institutional ownership is high at ~72.9%.

MNTN Inc. (NYSE:MNTN - Get Free Report)'s share price traded down 20.5% during trading on Wednesday following a weaker than expected earnings announcement. The company traded as low as $9.05 and last traded at $9.0360. 299,684 shares traded hands during mid-day trading, a decline of 61% from the average session volume of 767,179 shares. The stock had previously closed at $11.36.

The company reported $0.11 EPS for the quarter, missing analysts' consensus estimates of $0.12 by ($0.01). The company had revenue of $73.70 million during the quarter, compared to analyst estimates of $72.63 million. MNTN had a positive return on equity of 9.51% and a negative net margin of 2.22%.The firm's revenue for the quarter was up 14.2% on a year-over-year basis. During the same quarter last year, the business earned ($1.41) earnings per share.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. UBS Group set a $20.50 target price on shares of MNTN in a research note on Tuesday, January 13th. Morgan Stanley decreased their price objective on shares of MNTN from $22.50 to $20.50 and set an "equal weight" rating for the company in a research note on Tuesday, January 13th. Citigroup decreased their price objective on shares of MNTN from $22.00 to $17.00 and set a "buy" rating for the company in a research note on Thursday, February 12th. Tigress Financial decreased their price objective on shares of MNTN from $36.00 to $26.00 and set a "buy" rating for the company in a research note on Tuesday, March 3rd. Finally, Evercore set a $27.00 price objective on shares of MNTN in a research note on Wednesday, February 11th. Ten equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $22.36.

Hedge Funds Weigh In On MNTN

Several institutional investors have recently made changes to their positions in MNTN. Soros Fund Management LLC purchased a new position in shares of MNTN during the 2nd quarter valued at approximately $2,187,000. Raymond James Financial Inc. purchased a new position in shares of MNTN during the 2nd quarter valued at approximately $2,111,000. Bamco Inc. NY purchased a new position in shares of MNTN during the 2nd quarter valued at approximately $1,531,000. Balyasny Asset Management L.P. purchased a new position in shares of MNTN during the 2nd quarter valued at approximately $3,442,000. Finally, Boothbay Fund Management LLC purchased a new stake in MNTN in the 2nd quarter worth $2,183,000. 72.90% of the stock is owned by hedge funds and other institutional investors.

MNTN Trading Down 20.7%

The company has a market cap of $586.32 million and a PE ratio of -5.83. The firm's fifty day moving average is $9.54 and its 200 day moving average is $11.42.

MNTN Company Profile

MNTN is a software platform specializing in connected television (CTV) advertising, offering marketers the tools to plan, launch and measure streaming TV campaigns. Its platform enables brands to reach audiences across major OTT and CTV channels, helping advertisers target viewers based on demographic, behavioral and contextual data.

The company's core product suite includes campaign management, real-time bidding and performance analytics. MNTN integrates with leading streaming services and ad exchanges, allowing clients to execute programmatic buys, track view-through conversions and optimize media spend through automated reporting dashboards.

Founded by experienced digital advertising professionals, MNTN is headquartered in Austin, Texas, and primarily serves brands and agencies across the United States and Canada.

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