Beasley Broadcast Group (BBGI) increases its guidance

Apr.14.05 | About: Beasley Broadcast (BBGI)

Beasley Broadcast Group (ticker: BBGI) announced that it expects 1Q05 revenues and expenses to exceed its previous guidance, which implies higher station operating income  See details below:

Old guidance:

  • Revenue growth: 3%
  • Operating expense growth: 4-5%

New guidance:

  • Revenue growth: 8-10%
  • Operating expense growth (excluding one-time items): 8-10%

One-time item:

  • $1.4 million expense related to non-recurring employee costs and higher programming and promotional expenses

 1Q04 Results ($ in millions):

Revenues: $26.1
- Operating expenses: $20.5
= Station operating income: $5.5

1Q05 Forecast based on old guidance ($ in millions):

Revenues (+3%): $26.9
  - Operating expenses (+4-5%): $21.3 - $21.6
= Station operating income: $5.5 - $5.3

1Q05 Forecast based on new guidance ($ in millions):

Revenues (+8-10%): $28.2 - $28.7
  - Operating expenses (+8-10%): $22.2 - $22.6
= Station operating income: $6.0 - $6.1

Quick comment:  This is good news for BBGI.  Before the announcement, the consensus revenue estimate for BBGI was $27.1 million.  Currently, the consensus EPS estimate is $0.08 for the quarter, but will be revised upwards based on today's announcement.

Bbgi_1