Dolphin Entertainment (NASDAQ:DLPN) Announces Earnings Results

Dolphin Entertainment (NASDAQ:DLPN) posted its quarterly earnings results on Wednesday. The company reported $0.02 earnings per share for the quarter, topping the consensus estimate of ($0.07) by $0.09, Zacks reports. The firm had revenue of $14.44 million for the quarter, compared to analyst estimates of $14.50 million. Dolphin Entertainment had a negative return on equity of 41.42% and a negative net margin of 6.02%.

Here are the key takeaways from Dolphin Entertainment’s conference call:

• Second-quarter revenue increased 2.5% year over year to $14.4 million, while first-half revenue rose 3.8% to $27.2 million, supported by activity across the company’s agencies and entertainment-related events.
• Profitability weakened, with the operating loss widening to $1.0 million from approximately $0.1 million a year earlier and adjusted EBITDA declining to $243,000 from $628,000; cash fell to $7.7 million from $8.8 million at year-end. Management attributed much of the pressure to roughly $400,000 each in retention bonuses and litigation-related fees.
• Management expects a significant third-quarter profitability improvement as the one-time bonuses and elevated legal costs roll off, while stronger seasonal demand in the second half—particularly at The Digital Dept. and 42West—could support results.
• Dolphin is developing several growth initiatives, including Graviteur Studios, the DealMaker venture partnership, and Copper Books; management expects its first DealMaker venture to reach the market before year-end and is targeting eventual activity of three to four ventures annually without requiring capital from Dolphin’s balance sheet.
• The company projects improving free cash flow from its existing operations as bank debt payments end in roughly two years, saving about $2.2 million annually, and New York and Los Angeles leases expire in the second half of next year, potentially reducing costs by another approximately $1 million per year.

Dolphin Entertainment Stock Performance

DLPN traded up $0.06 on Thursday, reaching $1.20. The company had a trading volume of 11,651 shares, compared to its average volume of 29,492. The stock has a market cap of $15.56 million, a P/E ratio of -4.17 and a beta of 1.90. The company has a debt-to-equity ratio of 1.99, a quick ratio of 0.73 and a current ratio of 0.73. Dolphin Entertainment has a fifty-two week low of $0.99 and a fifty-two week high of $1.88. The company’s fifty day moving average is $1.11 and its 200 day moving average is $1.36.

Institutional Investors Weigh In On Dolphin Entertainment

A hedge fund recently raised its position in Dolphin Entertainment stock. Renaissance Technologies LLC grew its position in Dolphin Entertainment, Inc. (NASDAQ:DLPN) by 25.1% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 47,400 shares of the company’s stock after purchasing an additional 9,500 shares during the quarter. Renaissance Technologies LLC owned about 0.39% of Dolphin Entertainment worth $74,000 as of its most recent SEC filing. 8.87% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Separately, Weiss Ratings cut shares of Dolphin Entertainment from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Tuesday. One equities research analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the stock currently has an average rating of “Sell”.

Dolphin Entertainment Company Profile

Dolphin Entertainment, Inc, together with its subsidiaries, operates as an independent entertainment marketing and production company in the United States. The company operates in two segments, Entertainment Publicity, and Marketing and Content Production. The Entertainment Publicity and Marketing segment provides diversified marketing services, including public relations, entertainment and hospitality content marketing, strategic communications, strategic marketing consulting, social media and influencer marketing, digital marketing, creative branding, talent publicity, and entertainment marketing services, as well as produces promotional video content.