is a Zacks #1 Rank (Strong Buy) after making a sustained move into
profitability. Strong EPS beats and higher estimates make this
stock attractive to aggressive growth investors.
Fisher Communications, Inc., an integrated media company, through
its subsidiaries, engages in television and radio broadcasting
businesses. The company owns and operates network-affiliated
television stations in Washington, Oregon, Idaho, and and California. In addition, Fisher engages in Internet business, radio stations and managed radio stations in Washington and Montana. The company owns
and operates 13 full power television stations, 7 low power
television stations, and 10 owned and managed radio stations in
the Western United States. Its television stations reach 4.2
million households. Fisher Communications, Inc. was founded in
1910 and is based in Seattle, Washington.
FSCI Tops Expectations Two Straight Times
FSCI has beaten the Zacks Consensus Estimate in each of the last
two quarters. The first beat came in the September 2011 quarter
saw when the company posted earnings of $0.17, $0.07 ahead of the
Consensus Estimate of $0.10. The stock then moved
higher by 4% after that 70% beat.
FSCI Recently Reported Earnings
On March 1, 2012 the company reported revenue of $46 million
roughly $5 million more than the Zacks Consensus Estimate and
lower than the $58 million reported in the year ago period. EPS
of $0.72 was $0.41 ahead of the estimate or a 132% beat. As a
result the stock moved less than 1%.
The stock didn't move much on the huge beat due to what happened
in the year ago period. For the December 2010 quarter, the
company reported earnings of $0.93, $0.58 ahead of the Zacks
Consensus Estimate for a 165% beat. The stock was up 6% following
the earnings report. The beat in the final quarter of 2011 was
smaller than the beat in the 2010 in both absolute and percentage
Earnings Estimates Bumped Up
Following the most recent earnings report, analysts bumped up
their earnings estimates for 2012. The Zacks Consensus Estimate
for 2012 EPS moved from $1.91 in February 2012 to the current
level of $2.22. That works out to an increase of 16%.
FSCI has some very reasonable valuation metrics. The one that
stands out is the 39x trailing earnings multiple that is well
above the 17x industry average. Forward earnings are different
picture, coming in at 14x its just below the 14.6x industry
average. Price to book and price to sales both show the company
trading at a discount to the industry average.
The chart shows that the stock has recently broke through an upper
resistance level. Having tested the $31 level two times in the
last 12 months, the stock has recently pushed ahead and is poised
to make new 12 month highs. With the 200 day moving average
providing support in the high 20's, the timing is good for
aggressive stock investors to participate in what looks to be a
rally for the stock. FSCI is a Zacks #1 Rank (Strong Buy).
Brian Bolan is the Aggressive Growth Stock Strategist
Zacks.com. He is also the Editor in charge of the Zacks Home Run Investor