Here's what Roth Capital analyst Richard Ingrassia wrote to clients after Hollywood Media (ticker: HOLL) reported Q4 results:
HOLL chart below.
Broadway Revenues Surging, Cablenet Reaches Milestone
- We are reiterating our Strong Buy rating and $7.50 price target on shares of Hollywood Media.
- The Company reported revenues well ahead of expectations, but earnings were below our forecast due to higher SG&A expenses, including approx. $1.3 million in non-recurring items.
- Thanks to a redesigned web site and increased general demand for new shows, Broadway Ticketing revenues were significantly better than expected in the fourth quarter. Management guidance suggests 33% Y/Y growth in FY05.
- Other consolidated business segments performed slightly below our forecast in the quarter. Integration of the Studio Systems acquisition has taken longer than expected, but management reports several new contracts in 1H05. We expect a restructured Internet ad sales segment to benefit from surging user traffic and turn profitable in 2Q05.
- The digital cable network reached 10 million households in February, well ahead of schedule, thanks to an undisclosed new carrier and add-on deployments by Cox. The Company is now preparing to launch a national ad sales effort.
- No update was provided on the Company's strategic intention for MovieTickets.com, but the site is increasing traffic and most likely market share thanks to an expanded relationship with AOL Moviefone and Google.
Full disclosure: at the time of writing I'm long HOLL.