3 Stocks Pushing The Media Industry Lower

The Media industry as a whole closed the day down 0.8% versus the S&P 500, which was down 0.2%. Laggards within the Media industry included Beasley Broadcast Group ( BBGI), down 5.5%, RLJ Entertainment ( RLJE), down 2.4%, Saga Communications ( SGA), down 2.6%, Dex Media ( DXM), down 3.1% and Townsquare Media ( TSQ), down 2.6%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Saga Communications ( SGA) is one of the companies that pushed the Media industry lower today. Saga Communications was down $0.98 (2.6%) to $37.10 on average volume. Throughout the day, 6,249 shares of Saga Communications exchanged hands as compared to its average daily volume of 5,700 shares. The stock ranged in price between $37.10-$37.62 after having opened the day at $37.60 as compared to the previous trading day's close of $38.08.

Saga Communications, Inc., a broadcast company, acquires, develops, and operates broadcast properties in the United States. The company operates through two segments, Radio and Television. Saga Communications has a market cap of $186.2 million and is part of the services sector. Shares are down 12.4% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Saga Communications a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Saga Communications as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on SGA go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.6%. Since the same quarter one year prior, revenues slightly increased by 1.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • SGA's debt-to-equity ratio is very low at 0.30 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • After a year of stock price fluctuations, the net result is that SGA's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • SAGA COMMUNICATIONS's earnings per share declined by 6.1% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, SAGA COMMUNICATIONS reported lower earnings of $2.56 versus $2.62 in the prior year. For the next year, the market is expecting a contraction of 13.7% in earnings ($2.21 versus $2.56).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Media industry and the overall market, SAGA COMMUNICATIONS's return on equity is below that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Saga Communications Ratings Report

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At the close, RLJ Entertainment ( RLJE) was down $0.01 (2.4%) to $0.40 on light volume. Throughout the day, 300 shares of RLJ Entertainment exchanged hands as compared to its average daily volume of 78,600 shares. The stock ranged in price between $0.40-$0.40 after having opened the day at $0.40 as compared to the previous trading day's close of $0.41.

RLJ Entertainment, Inc., an entertainment company, acquires content rights in British episodic mystery and drama, urban programming, and full-length motion pictures in the United States, United Kingdom, and internationally. RLJ Entertainment has a market cap of $5.3 million and is part of the services sector. Shares are down 79.4% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates RLJ Entertainment as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and unimpressive growth in net income.

Highlights from TheStreet Ratings analysis on RLJE go as follows:

  • The debt-to-equity ratio is very high at 3.15 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Media industry and the overall market, RLJ ENTERTAINMENT INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for RLJ ENTERTAINMENT INC is rather low; currently it is at 22.59%. Regardless of RLJE's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, RLJE's net profit margin of -40.70% significantly underperformed when compared to the industry average.
  • Looking at the price performance of RLJE's shares over the past 12 months, there is not much good news to report: the stock is down 87.07%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Media industry average. The net income has decreased by 5.5% when compared to the same quarter one year ago, dropping from -$10.07 million to -$10.63 million.

You can view the full analysis from the report here: RLJ Entertainment Ratings Report

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Beasley Broadcast Group ( BBGI) was another company that pushed the Media industry lower today. Beasley Broadcast Group was down $0.26 (5.5%) to $4.58 on light volume. Throughout the day, 501 shares of Beasley Broadcast Group exchanged hands as compared to its average daily volume of 1,900 shares. The stock ranged in price between $4.58-$4.58 after having opened the day at $4.58 as compared to the previous trading day's close of $4.85.

Beasley Broadcast Group, Inc., a radio broadcasting company, operates radio stations in the United States. As of March 11, 2015, the company owned and operated 53 stations, including 33 FM stations and 20 AM stations located in 12 large- and mid-size markets in the United States. Beasley Broadcast Group has a market cap of $32.9 million and is part of the services sector. Shares are down 5.1% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Beasley Broadcast Group as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and a generally disappointing performance in the stock itself.

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Highlights from TheStreet Ratings analysis on BBGI go as follows:

  • BBGI's very impressive revenue growth greatly exceeded the industry average of 6.6%. Since the same quarter one year prior, revenues leaped by 91.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.69, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
  • BEASLEY BROADCAST GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, BEASLEY BROADCAST GROUP INC increased its bottom line by earning $0.04 versus $0.02 in the prior year.
  • The gross profit margin for BEASLEY BROADCAST GROUP INC is currently lower than what is desirable, coming in at 30.65%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 9.36% trails that of the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Media industry average. The net income has decreased by 16.2% when compared to the same quarter one year ago, dropping from $3.02 million to $2.53 million.

You can view the full analysis from the report here: Beasley Broadcast Group Ratings Report

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