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Townsquare (TSQ) to Report Q2 Earnings: What's in the Cards?

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Townsquare Media (TSQ - Free Report) is set to release second-quarter 2021 results on Aug 3.

For the second quarter, Townsquare expects revenues between $101 million and $104 million, indicating growth of 36-40% year over year. Adjusted EBITDA is expected between $28 million and $29 million.

The Zacks Consensus Estimate for revenues is pegged at $103.4 million, suggesting growth of 39.1% from the prior-year quarter. The consensus mark for earnings is pegged at 59 cents per share, suggesting year-over-year growth of 247.5%.

Notably, the company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing the same in the remaining two, the average surprise being 95.5%.

Let’s see how things have shaped up for this announcement.

Townsquare Media, Inc. Price and EPS Surprise

Townsquare Media, Inc. Price and EPS Surprise

Townsquare Media, Inc. price-eps-surprise | Townsquare Media, Inc. Quote

Factors to Consider

Townsquare Media’s second-quarter performance is expected to have benefited from growth in digital advertising revenues and Townsquare Interactive (TSI).

Robust performance of TSI, the company’s digital marketing solutions subscription business, is expected to have been a key catalyst. TSI’s subscription revenues have grown nearly $10 million per year on average for six straight years, at a stable 30% margin since 2016.

For the second quarter, the company expects Townsquare Interactive net revenue growth to accelerate to over 18% year over year.

Steady contributions from digital advertising solutions, Townsquare Ignite and Townsquare Amped are expected to have aided digital advertising revenue growth in the to-be-reported quarter. Digital advertising revenues are anticipated to increase over 40% year over year in the to-be-reported quarter.

The company expects Ignite’s and Amped’s second-quarter net revenues to increase over 30% and 45%, respectively, year over year in the to-be-reported quarter.

However, sluggishness in live events and political ad revenues are expected to have remained overhangs.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Townsquare Media has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Avnet, Inc. (AVT - Free Report) has an Earnings ESP of +9.82% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Opendoor Technologies Inc. (OPEN - Free Report) has an Earnings ESP of +2.86% and a Zacks Rank #2.

Riot Blockchain, Inc. (RIOT - Free Report) has an Earnings ESP of +120.00% and a Zacks Rank #3.

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