We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Townsquare Media Declines 4% YTD: Right Time to Buy the Stock?
Read MoreHide Full Article
Townsquare Media (TSQ - Free Report) shares have dipped by 3.8% year to date (YTD), underperforming the Zacks Consumer Discretionary Sector’s appreciation of 27.8%.
Townsquare also lagged the Zacks Broadcast Radio and Television Industry and its peers like Apple (AAPL - Free Report) , Fox (FOX - Free Report) and Spotify (SPOT - Free Report) . While the industry has appreciated 55.1%, shares of Spotify, Fox and Apple have gained 162.6%, 60.1% and 26.1%, respectively.
Despite the underperformance, strong growth of the Digital Advertising segment, driven by differentiated offerings from competitors, bodes well for investors. TSQ is a Digital First Local Media Company and its unique strategy and solution are tailwinds.
During the third quarter of 2024, TSQ’s top line was driven by the strong performance of its digital platform. Digital platform revenues contributed 52% to TSQ’s total revenues.
Townsquare’s transition from a radio broadcast company to a digital-first media company bodes well for investors as it enables TSQ to provide customers with not only highly differentiated offerings but also to expand its market reach outside the highest-performing 50 cities in the United States.
The company’s digital products, which are completely in-house, enable TSQ to manage and control relationships with clients, leading to an enhanced customer experience and greater average spend.
Townsquare’s new partnership model is expected to drive the top line as it helps the company to not only enter new markets and increase digital revenue growth but also utilize capital to meet other corporate goals effectively. TSQ aims to share expertise with its partners by providing customised and data driven strategies to meet needs of businesses.
TSQ has partnered with SummitMedia, a broadcaster operating in local media properties in nine markets. This partnership will enable Townsquare to monetize Ignite’s opportunity and to expand its market reach as a digital programmatic advertising provider in the broadcasting and digital agency market.
Inspite of weakness in national advertising spends, TSQ’s differentiated and in-house Digital Advertising offering is driving topline and gaining market share.
For the fourth quarter of 2024, TSQ expects its Digital Advertising revenues to increase 15% year over year.
TSQ’s Short-Term Earnings Estimate Positive
The Zacks Consensus Earnings Estimate for both the full year 2024 and the fourth quarter of 2024 has shown an increasing trend over the past 30 days.
For the fourth quarter of 2024, TSQ expects its net revenues to be between $114.8 million and $118.8 million and adjusted EBITDA to be between $30.8 million and $31.8 million.
The Zacks Consensus Estimate for fourth-quarter 2024 earnings is currently pegged at 60 cents per share, up 11.11% over the past 30 days and indicating 76.47% growth from the year-ago quarter.
The consensus mark for fourth-quarter 2024 revenues is pegged at $116.41 million, indicating year-over-year growth of 1.41%.
For the full year of 2024, TSQ expects its total revenues to be between $448 million and $452 million and adjusted EBITDA to be between $100 million and $101 million.
The consensus mark for earnings is pegged at $1.07 per share, up 10 cents over the past 30 days but indicating a decline of 23.57% from the year ago quarter.
For 2024, the Zacks Consensus Estimate for revenues is pegged at $449.58 million, indicating a year-over-year decline of 1.02%.
TSQ’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing in the remaining two, the average negative surprise being 21.48%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
TSQ Valuation Favorable for Investors
Townsquare shares are currently undervalued, as suggested by a Value Score of A.
In terms of the forward 12-month Price/Earnings (P/E) ratio, TSQ is trading at 7.97X, lower than the Zacks Consumer Discretionary Market’s 19.76X.
Townsquare currently sports a Zacks Rank #1 (Strong Buy), which implies that investors may want to consider accumulating TSQ shares.
Image: Bigstock
Townsquare Media Declines 4% YTD: Right Time to Buy the Stock?
Townsquare Media (TSQ - Free Report) shares have dipped by 3.8% year to date (YTD), underperforming the Zacks Consumer Discretionary Sector’s appreciation of 27.8%.
Townsquare also lagged the Zacks Broadcast Radio and Television Industry and its peers like Apple (AAPL - Free Report) , Fox (FOX - Free Report) and Spotify (SPOT - Free Report) . While the industry has appreciated 55.1%, shares of Spotify, Fox and Apple have gained 162.6%, 60.1% and 26.1%, respectively.
Despite the underperformance, strong growth of the Digital Advertising segment, driven by differentiated offerings from competitors, bodes well for investors. TSQ is a Digital First Local Media Company and its unique strategy and solution are tailwinds.
Townsquare Media, Inc. Price and Consensus
Townsquare Media, Inc. price-consensus-chart | Townsquare Media, Inc. Quote
TSQ’s Digital Platform Performance Aids Prospects
During the third quarter of 2024, TSQ’s top line was driven by the strong performance of its digital platform. Digital platform revenues contributed 52% to TSQ’s total revenues.
Townsquare’s transition from a radio broadcast company to a digital-first media company bodes well for investors as it enables TSQ to provide customers with not only highly differentiated offerings but also to expand its market reach outside the highest-performing 50 cities in the United States.
The company’s digital products, which are completely in-house, enable TSQ to manage and control relationships with clients, leading to an enhanced customer experience and greater average spend.
Townsquare’s new partnership model is expected to drive the top line as it helps the company to not only enter new markets and increase digital revenue growth but also utilize capital to meet other corporate goals effectively. TSQ aims to share expertise with its partners by providing customised and data driven strategies to meet needs of businesses.
TSQ has partnered with SummitMedia, a broadcaster operating in local media properties in nine markets. This partnership will enable Townsquare to monetize Ignite’s opportunity and to expand its market reach as a digital programmatic advertising provider in the broadcasting and digital agency market.
Inspite of weakness in national advertising spends, TSQ’s differentiated and in-house Digital Advertising offering is driving topline and gaining market share.
For the fourth quarter of 2024, TSQ expects its Digital Advertising revenues to increase 15% year over year.
TSQ’s Short-Term Earnings Estimate Positive
The Zacks Consensus Earnings Estimate for both the full year 2024 and the fourth quarter of 2024 has shown an increasing trend over the past 30 days.
For the fourth quarter of 2024, TSQ expects its net revenues to be between $114.8 million and $118.8 million and adjusted EBITDA to be between $30.8 million and $31.8 million.
The Zacks Consensus Estimate for fourth-quarter 2024 earnings is currently pegged at 60 cents per share, up 11.11% over the past 30 days and indicating 76.47% growth from the year-ago quarter.
The consensus mark for fourth-quarter 2024 revenues is pegged at $116.41 million, indicating year-over-year growth of 1.41%.
For the full year of 2024, TSQ expects its total revenues to be between $448 million and $452 million and adjusted EBITDA to be between $100 million and $101 million.
The consensus mark for earnings is pegged at $1.07 per share, up 10 cents over the past 30 days but indicating a decline of 23.57% from the year ago quarter.
For 2024, the Zacks Consensus Estimate for revenues is pegged at $449.58 million, indicating a year-over-year decline of 1.02%.
TSQ’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing in the remaining two, the average negative surprise being 21.48%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
TSQ Valuation Favorable for Investors
Townsquare shares are currently undervalued, as suggested by a Value Score of A.
In terms of the forward 12-month Price/Earnings (P/E) ratio, TSQ is trading at 7.97X, lower than the Zacks Consumer Discretionary Market’s 19.76X.
Townsquare currently sports a Zacks Rank #1 (Strong Buy), which implies that investors may want to consider accumulating TSQ shares.
You can see the complete list of today’s Zacks #1 Rank stocks here.