Saga Communications Q4 revenue falls 9.3% on ad market weakness

Overview

• U.S. radio broadcaster's Q4 revenue fell 9.3% yr/yr as overall ad market softened

• Company posted Q4 net loss after $20.4 mln impairment charge on goodwill and licenses

• Saga completed sale of telecom towers, recognizing $11.6 mln gain

Outlook

• Saga expects capital expenditures of $3.5 mln to $4.5 mln for 2026

• Company intends to pay regular quarterly cash dividends in the future

• Saga Board will continue to consider special dividends and stock buybacks

Result Drivers

• RADIO ADVERTISING WEAKNESS - Co said lower than expected revenue growth in radio advertising drove a $20.4 mln impairment charge and weighed on Q4 results

• DIGITAL REVENUE GROWTH - Digital revenue increased 25.8% yr/yr to $4.3 mln in Q4, partially offsetting declines in other segments

• LOW POLITICAL ADVERTISING - Gross political revenue fell sharply in Q4, as is typical in non-election years, further reducing overall revenue

Company press release: ID:nGNX9zh33s

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the broadcasting peer group is "buy"

• Wall Street's median 12-month price target for Saga Communications Inc is $18.00, about 63.6% above its March 11 closing price of $11.00

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 25 three months ago

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