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

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

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

NASDAQ SGA traded down $0.25 on Thursday, hitting $9.90. 6,470 shares of the company’s stock were exchanged, compared to its average volume of 12,324. The stock has a 50-day moving average of $9.00 and a 200-day moving average of $10.42. The stock has a market cap of $62.96 million, a price-to-earnings ratio of -7.33 and a beta of -0.10. Saga Communications has a 52 week low of $8.24 and a 52 week high of $13.51. The company has a current ratio of 2.81, a quick ratio of 2.81 and a debt-to-equity ratio of 0.03.

Institutional Trading of Saga Communications

Institutional investors and hedge funds have recently modified their holdings of the business. Geode Capital Management LLC lifted its position in shares of Saga Communications by 3.3% during the 4th quarter. Geode Capital Management LLC now owns 59,371 shares of the company’s stock worth $678,000 after buying an additional 1,923 shares during the last quarter. Empowered Funds LLC raised its stake in Saga Communications by 5.8% during the fourth quarter. Empowered Funds LLC now owns 33,851 shares of the company’s stock worth $386,000 after acquiring an additional 1,850 shares in the last quarter. Bank of America Corp DE raised its stake in 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 worth $211,000 after acquiring an additional 16,896 shares in the last quarter. LPL Financial LLC bought a new position in shares of Saga Communications in the fourth quarter worth about $163,000. Finally, Osaic Holdings Inc. boosted its stake 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 valued at $52,000 after purchasing an additional 2,867 shares in the last quarter. 74.28% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

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

About Saga Communications

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.