CIBC World keeps its sector outperform rating on Univision Communications (UVN).
Analyst Jason Helfstein says fourth-quarter results beat estimates on lower TV expense control, and higher radio revenue growth. But while first-quarter revenue guidance was in line (the company sees growth in the high single to low double digits), he thinks Univision once again is too conservative with its expense guidance.
Helfstein believes the company, for four quarters now, has been overly conservative with its expense guidance. As such, for the first quarter, he sees $360 million in revenues, $92 million EBITDA, and 8 cents earnings per share. Helfstein views the stock drop as a good buying opportunity, as Internet and Spanish-language media is the only secular growth area in advertising.