Dallas, Texas 11/05/2013 (Financialstrend) – The radio and broadcasting player Cumulus Media Inc. (NASDAQ:CMLS) has managed to plough ahead at the stock market over the past few weeks primarily due to the strong build momentum in its operating fundamentals. The future potential of this radio Media Company was further underlined post its third quarter results announcements on October 29 when its stock posted a 6% increase in its market value post the announcement.
In spite of a rating downgrade in the run up to the results announcement by Stanford research, the stock has posted 10.2% increase in value over the past one week of trading. Analysts have a price target of $7 on the stock. As of close of business on November 4, the stock was trading at $6.33 per share 202% above its 52 week low price.
Commenting on the strong performance in the just concluded quarter and outlook for the future, company Chairman and Chief executive officer Lew Dickey, has been quoted as saying “This was another solid quarter for the Company. Our growth initiatives complemented our core business, which continued to take share, and we are seeing a continuation of these trends in fourth quarter”.
Net Revenue was up 2.1% and was ascribed to the increase in the advertisement revenue from both local and national advertising followed by revenue the radio content provider and broadcaster was able to generate through its live events. Operating expenses were also up 7.6% compared to 3QFY12. Not just satisfied with growing its top line, it also managed to increase its bottom line by bringing in a slew of cost cutting measures. Its corporate and operational expenses were also down 9.4% compared to same quarter of FY12. On the back of acquisition of new radio stations the company expects it revenue to go up further in the next quarters.