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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