Friday, February 04, 2022
Lee Enterprises, Inc. (LEE)
Favorable Digital Momentum; Raising Estimates
Lee Enterprises Inc is a local news publication company in the United States. Its products include daily and Sunday newspapers, weekly newspapers and classified and few other specialty publications. Its products are used as a platform for advertising in mid-size markets. Revenues are generated primarily from retail and classifieds advertising and the remaining from subscriptions to its printed and digital products.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
A strong start. On February 3, 2022, the company reported strong fiscal first quarter end December results with revenues and Adj. EBITDA slightly better than expectations. Revenues were $202 million, above our estimate of $200 million, boosted by strong Digital revenues up 17% from the year earlier quarter. Adj. EBITDA for the quarter was $26.1 million, 10% above our forecast of $23.7 million.
Strong Digital revenues. Digital advertising and marketing services revenue grew 30% to $43 million, excluding digital political revenue from the prior year. Notably, revenue from Amplified was up 69% to $15 million, beating our estimate of $14 million. The company provided compelling Digital revenue guidance of $230 million for the fiscal full year 2022, above our original estimate of $192 …
This Company Sponsored 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.
