Cumulus Media Inc. Third Quarter Earnings Sneak Peek

Cumulus Media Inc. (NASDAQ:CMLS) will unveil its latest earnings on Monday, November 5, 2012. Cumulus Media is a radio broadcasting company that owns and operates FM and AM radio station clusters serving mid-sized markets throughout the United States.

Cumulus Media Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 6 cents per share, a decline of 88.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 4 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 6 cents during the last month. For the year, analysts are projecting net income of 2 cents per share, a decline of 95.2% from last year.

Past Earnings Performance: For the past three quarters, the company’s quarterly results have come in below analyst’s expectations. Last quarter, the company reported profit of 3 cents per share versus a mean estimate of net income of 5 cents per share.

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A Look Back: In the second quarter, profit rose more than sixfold to $8.1 million (one cent a share) from $1.3 million (3 cents a share) the year earlier, but fell short analyst expectations. Revenue rose more than fourfold to $281 million from $69.2 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.77 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Wall St. Revenue Expectations: On average, analysts predict $290.9 million in revenue this quarter, a decline of 2.1% from the year-ago quarter. Analysts are forecasting total revenue of $1.12 billion for the year, a decline of 1.8% from last year’s revenue of $1.14 billion.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of more than threefold over the last four quarters.

The upcoming earnings announcement is a chance for the company to build on positive results from last quarter. The company reported losses in the fourth quarter of the last fiscal year and the first quarter, but finished in the black with income of $8.1 million in the second.

The company’s gross margin shrank by 3.4 percentage points in the in the second quarter. Revenue rose 306.3% while cost of sales rose 330.9% to $168.7 million from a year earlier.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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