Friday, April 24, 2020

Entravision Communications Corporation (EVC)

Are Investors Underestimating Its Cash In An Over Levered Industry?

Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision's TeleFutura network, with television stations in 20 of the nation's top 50 Hispanic markets. The Company also operates one of the nation's largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.

Michael Kupinski, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Q1 likely would have been much stronger. We estimate that Q1 revenues will be $62.1 million and cash flow of $7.2 million. Our estimates reflect the fall off in advertising in the last few weeks of the quarter, which we believe started out very strong.

Focus on Q2. We believe that the company implemented cost cutting measures as revenue fell, including a significant furlough of 150 employees, salary reductions firm wide, and corporate expense cuts. We believe that these actions will not be fully reflected in Q2, but will become more evident in Q3 and Q4. Q2 cash flow is expected to be modestly negative, but...

This Company Sponsors Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report.  NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.