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Townsquare (TSQ) to Report Q4 Earnings: What's in the Cards?

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Townsquare Media (TSQ - Free Report) is set to release fourth-quarter 2018 results on Mar 12.

In the last reported quarter, Townsquare’s adjusted earnings of 36 cents per share beat the Zacks Consensus Estimate by a penny. The figure jumped 38.5% year over year.

Revenues of $114 million climbed almost 2% on a year-over-year basis and beat the consensus mark of $112 million.

For the fourth quarter, Townsquare expects revenues between $102 million and $105 million, representing growth of 2-5%. Adjusted EBITDA is expected between $23 million and $24 million.

While the Zacks Consensus Estimate for fourth-quarter earnings stands at 26 cents, the consensus mark for revenues is $105 million.

Let’s see how things are shaping up for this announcement.

Factors to Watch

Townsquare is expected to benefit from higher political revenues in the to-be-reported quarter. Management anticipates $5.5-$5.6 million of political revenues.

Townsquare is also expected to gain from the success of its “Local First” initiative that focuses on improving execution in its 67 small and medium-sized markets. The company’s investments in building content and expanding sales force are major growth drivers. Moreover, accretive acquisitions in local markets have expanded its small and medium-sized footprint.
 

 

Moreover, anticipated robust performance from Townsquare Interactive (TSI) and Townsquare Ignite are key catalysts. These factors are expected to drive top-line growth.

Further, declining net leverage improves liquidity.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

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

Stocks With Favorable Combination

Here are a few stocks you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.

Catabasis Pharmaceuticals (CATB - Free Report) has an Earnings ESP of +7.53% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Azul SA (AZUL - Free Report) has an Earnings ESP of +8.33% and a Zacks Rank #1.

Conagra Brands (CAG - Free Report) has an Earnings ESP of +2.04% and a Zacks Rank #3.

 

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