Cumulus reports Q2 profit
Results down from a year ago, but stock jumps 73%Cumulus Media, with an assist from Entravision Communications, proved it's still possible for investors to make money in radio.
Cumulus reported second-quarter results that were down significantly from a year ago, but the company turned a decent profit, and the stock rocketed 73% on Wednesday to $1.38.
The shares still are down 72% from their 52-week high but up more than threefold in the past eight months.
Cumulus, with 347 stations, is the nation's second-largest radio company. It earned $14.1 million in the quarter, down from $30.3 million a year ago, on revenue that dropped 21% to $66 million.
Entravision shares also leaped Wednesday, by 27% to 90 cents. That's 76% off the 52-week high but more than a sevenfold increase in just four months.
Cumulus reported its results early Wednesday, so investors were rewarding the company by bidding shares higher on 10 times normal volume. Entravision, though, reported second-quarter results after the closing bell, and some of its gains were wiped clean by after-hours traders.
Entravision, a Spanish-language radio and TV company, reported a $1.8 million loss compared with a $10.7 million profit last year. Revenue dropped 23% to $48.7 million.