Saga Communications (NASDAQ:SGA) Releases Earnings Results, Beats Expectations By $0.33 EPS

Saga Communications (NASDAQ:SGA) announced its earnings results on Thursday. The company reported $0.15 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.18) by $0.33, Zacks reports. Saga Communications had a positive return on equity of 3.88% and a negative net margin of 8.24%.

Here are the key takeaways from Saga Communications’ conference call:

• Q2 net revenue fell 6.5% year over year to $26.4 million, while station operating expenses rose 5.4% and operating income declined to $623,000. Local, national, and non-traditional revenue all recorded double-digit declines.
• Saga’s blended digital revenue grew 60.8% in Q2 and 76.4% in the first half, while digital’s share of gross revenue increased to 19% from 14% a year earlier. Management said its investments in digital personnel, in-house search capabilities, and fulfillment infrastructure are largely in place.
• Third-quarter revenue is pacing down mid-single digits, excluding political revenue, although management cited improving monthly trends and expects greater productivity from nine newly hired sales managers. The company has $1.1 million of additional political revenue booked for the remainder of the year and sees potential for more election-related spending.
• Saga reported $27.8 million in cash and short-term investments at June 30, repaid its $5 million revolving-credit balance, and terminated the credit agreement for greater flexibility. It continues to return capital through its $0.25 quarterly dividend and has sold or is selling six non-core properties for more than $4 million.
• Management announced a seven-year joint sales partnership with the University of Florida’s College of Journalism and Communications, which it expects to expand its Ocala-Gainesville footprint and create additional traditional and digital media opportunities.

Saga Communications Price Performance

Saga Communications stock traded down $0.32 during midday trading on Thursday, reaching $9.83. 6,971 shares of the company were exchanged, compared to its average volume of 12,324. The firm’s 50-day simple moving average is $9.00 and its 200-day simple moving average is $10.42. Saga Communications has a 1 year low of $8.24 and a 1 year high of $13.51. The company has a debt-to-equity ratio of 0.03, a quick ratio of 2.81 and a current ratio of 2.81. The company has a market capitalization of $62.53 million, a price-to-earnings ratio of -7.28 and a beta of -0.10.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Osaic Holdings Inc. lifted its position in shares of Saga Communications by 256.7% in the 2nd quarter. Osaic Holdings Inc. now owns 3,984 shares of the company’s stock worth $52,000 after acquiring an additional 2,867 shares during the period. LPL Financial LLC bought a new stake in shares of Saga Communications during the fourth quarter valued at approximately $163,000. Bank of America Corp DE lifted its stake in shares of Saga Communications by 30,720.0% during the third quarter. Bank of America Corp DE now owns 16,951 shares of the company’s stock valued at $211,000 after acquiring an additional 16,896 shares during the period. Empowered Funds LLC raised its position in shares of Saga Communications by 6.2% during the 1st quarter. Empowered Funds LLC now owns 30,406 shares of the company’s stock valued at $379,000 after acquiring an additional 1,769 shares during the last quarter. Finally, Geode Capital Management LLC raised its holdings in Saga Communications by 3.3% in the fourth quarter. Geode Capital Management LLC now owns 59,371 shares of the company’s stock worth $678,000 after purchasing an additional 1,923 shares during the period. Institutional investors and hedge funds own 74.28% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on SGA. Weiss Ratings lowered Saga Communications from a “sell (d+)” rating to a “sell (d)” rating in a research note on Wednesday, May 20th. Noble Financial cut shares of Saga Communications from a “strong-buy” rating to a “market perform” rating in a report on Monday, May 11th. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Saga Communications currently has a consensus rating of “Reduce”.

Saga Communications Company Profile

Saga Communications, Inc (NASDAQ: SGA) is an independent radio broadcasting company that owns and operates a portfolio of local radio stations across the United States. Headquartered in Grosse Pointe Farms, Michigan, the company focuses on full‐service radio properties offering a variety of formats, including music, news‐talk and sports programming. In addition to traditional over‐the‐air broadcasts, Saga leverages web streaming and mobile platforms to broaden listener reach and provide advertisers with multimedia opportunities.

Founded in 1985 by Edward J.