Arbitron Earnings: Here’s Why Investors are Ambivalent Now

Arbitron Inc. (NYSE:ARB) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Arbitron Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 16.22% to $0.43 in the quarter versus EPS of $0.37 in the year-earlier quarter.

Revenue: Rose 2.86% to $107.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Arbitron Inc. reported adjusted EPS income of $0.43 per share. By that measure, the company missed the mean analyst estimate of $0.47. It missed the average revenue estimate of $108.93 million.

Quoting Management: Said Sean R. Creamer, President and Chief Executive Officer:
“I am pleased with the financial performance and operating results of the business for the second quarter and year-to-date.
“In the second quarter, we maintained focus on our long term priorities: investing in and growing our core radio services, evaluating and implementing quality initiatives to enhance the value and utility of our offerings, and exploring emerging opportunities with an emphasis on those that allow us to highlight the power and advantages of radio.
“As the media and advertising marketplaces continue to evolve and new technologies permit consumers to consume content virtually anytime and anywhere, it is important we keep pace with these changes to ensure radio gets full credit for its audience – regardless of the delivery platform. Radio is growing and vibrant – and we are committed to helping the radio industry tell and validate its complete and compelling story.”

Key Stats (on next page)…

Revenue decreased 3.92% from $111.78 million in the previous quarter. EPS decreased 28.33% from $0.60 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.69 to a profit $0.66. For the current year, the average estimate has moved down from a profit of $2.59 to a profit of $2.47 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)