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iHeartMedia (IHRT) shares rallied 14% in the last trading session to close at $22.64. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 11.6% gain over the past four weeks.
The upswing in share price came after the company reported better-than-expected first quarter, 2021 results. As the company continues its steady recovery from the coronavirus-induced downturn, first-quarter revenues of $707 million declined 9.5% year over year, surpassing the company's guidance for expected decline between 11% and 13% year over year. Excluding the impact of political revenues, first-quarter revenues were down 7% year over year.
This was partially offset by strong growth and profit trajectory showcased by Digital Audio Group where revenues grew 69.8% year over year, led by continued growth in Podcasting, which increased by 141.9% year over year.
Price and Consensus
This radio company is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of +91.1%. Revenues are expected to be $767.1 million, up 57.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For iHeartMedia, the consensus EPS estimate for the quarter has been revised 22.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on IHRT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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iHeartMedia, Inc. (IHRT) : Free Stock Analysis Report
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