Saga Communications (NASDAQ:SGA) Posts Quarterly Earnings Results, Beats Estimates By $0.33 EPS

Saga Communications (NASDAQ:SGA) issued its earnings results on Thursday. The company reported $0.15 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.18) by $0.33, Zacks reports. Saga Communications had a negative net margin of 8.24% and a positive return on equity of 3.88%.

Here are the key takeaways from Saga Communications’ conference call:

• Q2 net revenue fell 6.5% year over year to $26.4 million, while station operating expenses rose 5.4% and operating income declined to $623,000. Local, national, and non-traditional revenue all recorded double-digit declines.
• Saga’s blended digital revenue grew 60.8% in Q2 and 76.4% in the first half, while digital’s share of gross revenue increased to 19% from 14% a year earlier. Management said its investments in digital personnel, in-house search capabilities, and fulfillment infrastructure are largely in place.
• Third-quarter revenue is pacing down mid-single digits, excluding political revenue, although management cited improving monthly trends and expects greater productivity from nine newly hired sales managers. The company has $1.1 million of additional political revenue booked for the remainder of the year and sees potential for more election-related spending.
• Saga reported $27.8 million in cash and short-term investments at June 30, repaid its $5 million revolving-credit balance, and terminated the credit agreement for greater flexibility. It continues to return capital through its $0.25 quarterly dividend and has sold or is selling six non-core properties for more than $4 million.
• Management announced a seven-year joint sales partnership with the University of Florida’s College of Journalism and Communications, which it expects to expand its Ocala-Gainesville footprint and create additional traditional and digital media opportunities.

Saga Communications Stock Performance

Shares of NASDAQ SGA traded down $0.25 during mid-day trading on Thursday, reaching $9.90. 6,470 shares of the company were exchanged, compared to its average volume of 12,324. The stock has a market capitalization of $62.96 million, a P/E ratio of -7.33 and a beta of -0.10. The company has a quick ratio of 2.81, a current ratio of 2.81 and a debt-to-equity ratio of 0.03. The company’s 50-day simple moving average is $9.00 and its 200-day simple moving average is $10.42. Saga Communications has a twelve month low of $8.24 and a twelve month high of $13.51.

Institutional Investors Weigh In On Saga Communications

Several hedge funds have recently bought and sold shares of the stock. Geode Capital Management LLC boosted its holdings in shares of Saga Communications by 3.3% during the fourth quarter. Geode Capital Management LLC now owns 59,371 shares of the company’s stock worth $678,000 after acquiring an additional 1,923 shares during the period. Empowered Funds LLC lifted its holdings in Saga Communications by 5.8% during the 4th quarter. Empowered Funds LLC now owns 33,851 shares of the company’s stock worth $386,000 after purchasing an additional 1,850 shares during the last quarter. Bank of America Corp DE lifted its holdings in Saga Communications by 30,720.0% during the 3rd quarter. Bank of America Corp DE now owns 16,951 shares of the company’s stock worth $211,000 after purchasing an additional 16,896 shares during the last quarter. LPL Financial LLC bought a new stake in Saga Communications in the 4th quarter valued at $163,000. Finally, Osaic Holdings Inc. grew its holdings in Saga Communications by 256.7% in the 2nd quarter. Osaic Holdings Inc. now owns 3,984 shares of the company’s stock valued at $52,000 after buying an additional 2,867 shares in the last quarter. 74.28% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of brokerages have recently commented on SGA. Weiss Ratings downgraded shares of Saga Communications from a “sell (d+)” rating to a “sell (d)” rating in a research report on Wednesday, May 20th. Noble Financial downgraded shares of Saga Communications from a “strong-buy” rating to a “market perform” rating in a research note on Monday, May 11th. Two investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Saga Communications has an average rating of “Reduce”.

About Saga Communications

Saga Communications, Inc (NASDAQ: SGA) is an independent radio broadcasting company that owns and operates a portfolio of local radio stations across the United States. Headquartered in Grosse Pointe Farms, Michigan, the company focuses on full‐service radio properties offering a variety of formats, including music, news‐talk and sports programming. In addition to traditional over‐the‐air broadcasts, Saga leverages web streaming and mobile platforms to broaden listener reach and provide advertisers with multimedia opportunities.

Founded in 1985 by Edward J.