NEW YORK (TheStreet) -- Shares of Cumulus Media (CMLS) - Get Cumulus Media, Inc. Class A Report were falling 10.8% to $2.93 Tuesday after the radio broadcasting company missed analysts' estimates for earnings and revenue for the third quarter.
Cumulus Media reported earnings of 1 cent a share for the third quarter, missing the Capital IQ Consensus Estimate of 7 cents a share by 6 cents. Revenue grew 19.6% year over year to $313.9 million for the quarter, below analysts' estimates of $318.4 million for the quarter.
The company said that digital advertising revenue grew $7.3 million from the year-ago quarter to $12.6 million in the quarter due to increased Rdio user generation, and digital commerce generated by the Sweetjack platform. Broadcast advertising revenue grew $39.1 million to $287.6 million for the quarter.
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TheStreet Ratings team rates CUMULUS MEDIA INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CUMULUS MEDIA INC (CMLS) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and poor profit margins."
You can view the full analysis from the report here: CMLS Ratings Report