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What's in the Offing for Salem Media's (SALM) Q3 Earnings?

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Salem Media Group (SALM - Free Report) is set to release third-quarter 2021 results on Nov 4.The company’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average surprise being 370.2%.

In the last reported quarter, earnings of 8 cent per share beat the Zacks Consensus Estimate of a penny. The company had reported loss of 9 cents in second-quarter 2020.

Revenues increased 20.6% year over year to $63.78 million as well as surpassed the consensus mark of $60.2 million.

For third-quarter 2021, Salem Media expects revenues to be up 2-4%. Excluding revenues realized from political and the Uncle Tom film on SalemNOW in the year-ago quarter, revenues are anticipated to increase in the range of 9-11% in third-quarter 2021.

The Zacks Consensus Estimate for the quarterly revenues is currently pegged at $62 million, indicating an increase of 2.2% from the figure reported in the year-ago quarter.

Moreover, the Zacks Consensus Estimate for earnings now stands at 32 cents.

Let’s see how things are shaping up prior to this announcement.

Salem Media Group, Inc. Price and EPS Surprise Salem Media Group, Inc. Price and EPS Surprise

Salem Media Group, Inc. price-eps-surprise | Salem Media Group, Inc. Quote

Factors at Play

Salem Media’s third-quarter results will likely reflect benefits from the rapid digitization in the core areas of advertising and growing inclination of readers toward the Internet.

Moreover, the company’s focus on Salem Surround is anticipated to have aided its top-line growth. Notably, in the second quarter, total digital revenues jumped 19.7%, year over year, to $18.1 million and accounted for 28.3% of the total revenues.

The acquisition of several assets, including SeniorResource.com, ShiftWorship.com domain and digital Assets, and Centerline New Media domain and digital assets are likely to have aided Salem Media’s third-quarter top-line performance. Also, purchase of radio stations, KDIA-AM and KDYA-AM in SanFrancisco, CA is expected to have boosted the top line during the quarter under review.

What Our Model Says

Our proven model does not predict an earnings beat for Salem Media this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Salem Media currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming release:

HP (HPQ - Free Report) has an Earnings ESP of +1.89% and currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Applied Materials (AMAT - Free Report) has an Earnings ESP of +0.52% and holds a Zacks Rank of 2, currently.

AMC Entertainment (AMC - Free Report) has an Earnings ESP of +6.69% and carries a Zacks Rank #2, at present.


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