Entravision (EVC) to Report Q2 Earnings: What's in the Cards?
Entravision Communications EVC is set to report second-quarter 2021 results on Aug 5.
The Zacks Consensus Estimate for revenues is pegged at $163.1 million, indicating an increase of 261.4% from the year-ago quarter’s reported figure.
The consensus mark for earnings has remained unchanged at 8 cents per share in the past 30 days, suggesting year-over-year growth of 166.6%.
The company has trailing four-quarter earnings surprise of 71.7%, on average.
Let’s see how things have shaped up for the upcoming announcement.
Entravision Communications Corporation Price and EPS Surprise
Entravision Communications Corporation price-eps-surprise | Entravision Communications Corporation Quote
Factors Likely to Influence Q2 Results
Entravision Communications’ second-quarter top line is expected to have benefited from strength in its core broadcasting businesses excluding political along with consistent strong performance of digital segment.
Improved advertising spend in sectors including healthcare, finance and groceries is expected to have boosted television advertising revenues in the to-be-reported quarter.
Markedly, services contributed as the largest advertising category representing 42% of total audio revenues in first-quarter 2021. Revenues in auto — the company’s second-largest ad category — declined 36% year over year.
As with television, radio, auto ads were impacted by supply chain issues during the first quarter, which had a larger impact on tier two and tier three auto dealer spending across all radio markets. This trend is expected to have continued in the to-be-reported quarter.
Nonetheless, acquisition of majority interest in Cisneros Interactive and strength in its U.S. local advertising solutions business is expected to have contributed to digital revenues growth. The company’s digital sales operation currently serves more than 4600 clients each month in 21 countries.
Key Developments in Q2
On Jun 9, Entravision announced that the company entered into a definitive agreement to acquire MediaDonuts, a leading digital marketing performance and branding company with operations across seven countries in the Asia-Pacific region. The acquisition is anticipated to close on or around July 1, 2021.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Entravision Communications has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Avnet, Inc. AVT 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.
Arrow Electronics, Inc. ARW has an Earnings ESP of +0.77% and a Zacks Rank #2.
CACI International, Inc. CACI has an Earnings ESP of +6.62% and a Zacks Rank #2.
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