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

Zacks Equity Research

Townsquare Media TSQ 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.
 

Townsquare Media, Inc. Price

Townsquare Media, Inc. Price | Townsquare Media, Inc. Quote

 

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 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 has an Earnings ESP of +8.33% and a Zacks Rank #1.

Conagra Brands CAG has an Earnings ESP of +2.04% and a Zacks Rank #3.

 

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Townsquare Media, Inc. (TSQ) : Free Stock Analysis Report
 
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