Cumulus Shares 9 Percent Rise on Quarterly Results
The radio company performed well, even compared to last year when sales of political ads were high.
Shares of Cumulus Media surged 9 percent on Tuesday after the nation's second-largest owner-operator of radio stations said quarterly net revenue rose 5 percent to $275.5 million.
Stripping out acquisitions of Townsquare and Westwood One, which Cumulus did not own a year ago, revenue increased 1 percent.
The company said pro forma earnings before interest, taxes, depreciation and amortization rose 6 percent to $96 million despite tough comparisons due to political advertising a year ago.
The earnings results were disclosed on Tuesday prior to the opening bell on Wall Street and shares of Cumulus were up 59 cents to $7.33.
Cumulus stock has been on the rise lately as observers speculate it would make a nice acquisition for a larger media company. On Friday, RBC Capital Markets initiated coverage with an "outperform" rating and $9 price target.
Cumulus, which calls itself "the largest pure-play radio company in the U.S.," owns 525 stations in 110 cities and syndicates shows starring Mike Huckabee, Dr. Sanjay Gupta, Mark Levin, Kix Brooks and others.
- Prince Takes Over the 'Arsenio Hall Show,' Debuts New Funky Song
- A Train, a Trestle and 60 Seconds to Escape: How 'Midnight Rider' Victim Sarah Jones Lost Her Life
- 'Divergent' Star Shailene Woodley: The Next Jennifer Lawrence?
- 'Noah' Banned in Several Middle Eastern Countries
- Lindsay Lohan's OWN Series Gets First Official Trailer (Video)
- MOST SHARED
- MOST POPULAR
- Pee-wee Herman's Bike From 'Pee-wee's Big Adventure' Sells For $36,600 On eBay
- HUVr Hoverboard Is Not Shipping In December (Or Ever, For That Matter)
- Stratosphere: A Conversation with Matt Sorum and Album Preview
- 'Grey's Anatomy' 'You Got to Hide Your Love Away' Recap: Yang and Owen Back in the Sack