CTC Media Shares Plunged: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Russian broadcaster CTC Media (NAS: CTCM) fell more than 12% in early trading on worse than expected third quarter results. Management also warned that some ad inventory could go unsold in Q4.
So what: Revenue grew 12% on a non-GAAP basis to $159.6 million, yet that didn't aid profits. CTC booked just $0.10 a share of earnings, down 38% year over year. Analysts were looking for $0.13 a share of profit on $164.3 million in sales, according to data compiled by Yahoo! Finance.
Now what: But that's not the worst part. In September, CTC lowered its full-year revenue growth target to 15% in ruble terms. Now, thanks to lower advertiser demand, management is targeting 9% to 11% growth. Does the slowdown bother you? Or would you buy shares of CTC Media at current prices? Please weigh in using the comments box below.
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At the time this article was published Fool contributor Tim Beyers is a member of theMotley Fool Rule Breakersstock-picking team. He owned shares of Apple at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.