MNTN (NYSE:MNTN) Releases Earnings Results, Misses Estimates By $0.10 EPS

MNTN (NYSE:MNTN) posted its quarterly earnings results on Wednesday. The company reported $0.10 earnings per share for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.10), Zacks reports. MNTN had a return on equity of 18.85% and a net margin of 18.00%. The firm’s revenue for the quarter was up 14.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.08 EPS.

Here are the key takeaways from MNTN’s conference call:

• MNTN missed Q3 guidance: revenue was $80.3 million versus $86–$89 million expected, and adjusted EBITDA was $19.9 million versus $22–$25 million. Q4 guidance is $75–$78 million in revenue and $8–$10 million in adjusted EBITDA; full-year revenue guidance was cut to $311–$314 million.
• CEO Tony Weisman attributed the slowdown primarily to sales execution: compensation and organizational changes led to the loss of about 40% of experienced quota-carrying sellers, reducing new-business opportunities. MNTN has changed the plans and hired 16 sellers, but expects the disruption to continue into Q4 while new hires ramp.
• Existing customers continued to spend and expand, with the company’s expansion rate remaining well above 115%; management said the shortfall was concentrated in new customers. MNTN also reported a 79% gross margin and said it continues to win head-to-head pitches at prior rates.
• Despite the revenue shortfall, Q3 revenue grew 15% year over year and adjusted EBITDA rose 24% to $19.9 million, with a 24.8% margin. MNTN ended the quarter with $252 million in cash and no borrowings.

MNTN Stock Up 6.9%

Shares of MNTN stock traded up $0.67 during trading hours on Wednesday, hitting $10.40. The company’s stock had a trading volume of 1,341,520 shares, compared to its average volume of 598,167. MNTN has a 1-year low of $7.67 and a 1-year high of $14.98. The business has a fifty day moving average of $10.87 and a 200 day moving average of $9.97. The company has a market capitalization of $643.90 million, a PE ratio of 13.33 and a beta of 1.17.

Analyst Ratings Changes

Several research analysts recently weighed in on MNTN shares. Tigress Financial cut their target price on MNTN from $26.00 to $22.00 and set a “strong-buy” rating on the stock in a research report on Thursday, August 13th. Evercore set a $22.00 price target on MNTN in a research report on Wednesday, August 5th. Citigroup lowered their price target on MNTN from $17.00 to $16.00 and set a “buy” rating for the company in a research report on Thursday, August 13th. Freedom Broker initiated coverage on MNTN in a report on Tuesday. They issued a “buy” rating and a $16.50 price objective on the stock. Finally, Wall Street Zen raised MNTN from a “hold” rating to a “buy” rating in a research note on Monday, September 28th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, MNTN currently has an average rating of “Moderate Buy” and a consensus price target of $18.45.

Insider Activity at MNTN

In related news, major shareholder Baroda Ventures Llc sold 275,115 shares of MNTN stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $12.75, for a total transaction of $3,507,716.25. Following the transaction, the insider owned 6,375,543 shares in the company, valued at approximately $81,288,173.25. The trade was a 4.14% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Over the last quarter, insiders have sold 335,555 shares of company stock valued at $4,266,038. Company insiders own 19.60% of the company’s stock.

About MNTN

MNTN, Inc is an advertising technology company that provides software for planning, launching, measuring and optimizing connected television (CTV) advertising campaigns. Its platform is designed to help businesses use television advertising with the targeting, automation and performance measurement capabilities commonly associated with digital marketing.

The company’s products support campaign creation, audience targeting, media buying and analytics across streaming television environments.