Dolphin Entertainment (NASDAQ:DLPN) Issues Quarterly Earnings Results

Dolphin Entertainment (NASDAQ:DLPN) announced its earnings results on Wednesday. The company reported $0.02 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.07) by $0.09, Zacks reports. Dolphin Entertainment had a negative net margin of 6.02% and a negative return on equity of 41.42%. The company had revenue of $14.44 million during the quarter, compared to analysts’ expectations of $14.50 million.

Here are the key takeaways from Dolphin Entertainment’s conference call:

• Second-quarter revenue increased 2.5% year over year to $14.4 million, while first-half revenue rose 3.8% to $27.2 million, supported by activity across the company’s agencies and entertainment-related events.
• Profitability weakened, with the operating loss widening to $1.0 million from approximately $0.1 million a year earlier and adjusted EBITDA declining to $243,000 from $628,000; cash fell to $7.7 million from $8.8 million at year-end. Management attributed much of the pressure to roughly $400,000 each in retention bonuses and litigation-related fees.
• Management expects a significant third-quarter profitability improvement as the one-time bonuses and elevated legal costs roll off, while stronger seasonal demand in the second half—particularly at The Digital Dept. and 42West—could support results.
• Dolphin is developing several growth initiatives, including Graviteur Studios, the DealMaker venture partnership, and Copper Books; management expects its first DealMaker venture to reach the market before year-end and is targeting eventual activity of three to four ventures annually without requiring capital from Dolphin’s balance sheet.
• The company projects improving free cash flow from its existing operations as bank debt payments end in roughly two years, saving about $2.2 million annually, and New York and Los Angeles leases expire in the second half of next year, potentially reducing costs by another approximately $1 million per year.

Dolphin Entertainment Trading Up 4.1%

Shares of Dolphin Entertainment stock traded up $0.04 during mid-day trading on Wednesday, hitting $1.14. 34,074 shares of the stock were exchanged, compared to its average volume of 29,621. The stock has a market capitalization of $14.77 million, a price-to-earnings ratio of -3.91 and a beta of 1.90. Dolphin Entertainment has a twelve month low of $0.99 and a twelve month high of $1.88. The company has a current ratio of 0.73, a quick ratio of 0.73 and a debt-to-equity ratio of 1.99. The company has a 50-day simple moving average of $1.11 and a 200 day simple moving average of $1.36.

Analyst Ratings Changes

Separately, Weiss Ratings raised shares of Dolphin Entertainment from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday, July 28th. One equities research analyst has rated the stock with a Sell rating, According to data from MarketBeat, the company currently has a consensus rating of “Sell”.

Institutional Inflows and Outflows

An institutional investor recently raised its position in Dolphin Entertainment stock. Renaissance Technologies LLC increased its holdings in shares of Dolphin Entertainment, Inc. (NASDAQ:DLPN) by 25.1% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 47,400 shares of the company’s stock after buying an additional 9,500 shares during the quarter. Renaissance Technologies LLC owned about 0.39% of Dolphin Entertainment worth $74,000 as of its most recent filing with the Securities and Exchange Commission. 8.87% of the stock is currently owned by institutional investors.

Dolphin Entertainment Company Profile

Dolphin Entertainment, Inc, together with its subsidiaries, operates as an independent entertainment marketing and production company in the United States. The company operates in two segments, Entertainment Publicity, and Marketing and Content Production. The Entertainment Publicity and Marketing segment provides diversified marketing services, including public relations, entertainment and hospitality content marketing, strategic communications, strategic marketing consulting, social media and influencer marketing, digital marketing, creative branding, talent publicity, and entertainment marketing services, as well as produces promotional video content.