Why iHeartMedia's Stock Collapsed Today
Shares of radio and podcasting company iHeartMedia (NASDAQ: IHRT) plunged as much as 39.7% in trading on Wednesday after the company reported fourth-quarter 2022 financial results. Shares recovered slightly by midday but are still down 23% as of noon E.T.
On the surface, the numbers look good. Revenue was up 6% in the quarter to $1.1 billion, operating income jumped 41% to $173 million, and free cash flow was $165 million. But guidance is what has investors concerned.
Management expects revenue to fall by the midsingle digits in the first quarter of 2023 and thinks adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) will be $80 million to $90 million, down from $316 million last quarter. The company seems to be in a tailspin as advertising spending slows.
Source Fool.com
