Canada's Stingray Q4 revenue misses estimates; swings to net loss on impairment
Canada's Stingray Q4 revenue misses estimates; swings to net loss on impairment
Overview
Canada streaming media firm's Q4 revenue rose 44% yr/yr but missed analyst expectations
Adjusted EPS for Q4 missed analyst expectations
Net loss driven by goodwill impairment and higher acquisition costs despite revenue growth
Outlook
Stingray sees early Q1 2027 organic growth tracking over 20%
Company says programmatic ad sales are approaching C$275 mln annual run rate
Stingray maintains consolidated adjusted EBITDA margin target of 35%
Result Drivers
TUNEIN ACQUISITION - Higher advertising and subscription revenues from the TuneIn acquisition were the main driver of Q4 revenue and adjusted EBITDA growth
SINGING MACHINE ACQUISITION - Increased equipment sales from The Singing Machine acquisition contributed to revenue growth
FAST CHANNEL GROWTH - Higher FAST channel revenues supported overall revenue gains
Company press release: ID:nGNX9Js2kd
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Miss | C$137.8 mln | C$140.15 mln (5 Analysts) |
Q4 Adjusted EPS | Miss | C$0.31 | C$0.34 (5 Analysts) |
Q4 EPS |
| -C$0.95 |
|
Q4 Adjusted Net Income | Beat | C$20.8 mln | C$15.41 mln (1 Analyst) |
Q4 Net Income |
| -C$64.6 mln |
|
Q4 Adjusted EBITDA | Miss | C$42.5 mln | C$44.77 mln (5 Analysts) |
Q4 Operating Cash Flow |
| C$35.2 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the broadcasting peer group is "hold."
Wall Street's median 12-month price target for Stingray Group Inc is C$20.50, about 36.8% above its June 9 closing price of C$14.99
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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Canada's Stingray Q4 revenue misses estimates; swings to net loss on impairment