Salem Communications Misses Wall Street Estimates
Monday, February 25, 2013Shares of Salem Communications declined after a disappointing fourth quarter earnings due to expenses related to stock options and the retirement of debt.
The Camarillo Christian broadcaster and publisher reported net income of $2 million (8 cents a share), up from $400,000 (2 cents) for the same quarter a year earlier. Revenue rose 6 percent to nearly $61 million.
However, analysts on average had expected earnings of 13 cents a share, according to Thompson Financial Network.
The company said its fourth-quarter performance was hurt by a $2.2 million expense on the early retirement of some long-term debt and a $1 million charge due to the expensing of stock options.
For the full year, net income was $4.4 million (18 cents) compared to $5.6 million (23 cents) the previous year. Annual revenue grew 5 percent to $229 million.
Shares lost 58 cents, or nearly 5 percent, to close at $6.58 on the Nasdaq. The company announced its results after the market closed.
