Fisher Communications - Aggressive Growth
March 26 2012 - 8:00PM
Zacks
Fisher Communications (FSCI) is a Zacks #1 Rank (Strong Buy)
after making a sustained move into profitability. Strong EPS beats
and higher estimates make this stock attractive to aggressive
growth investors.
Company Description
Fisher Communications, Inc., an integrated media company,
through its subsidiaries, engages in television and radio
broadcasting businesses. The company owns and operates
network-affiliated television stations in Washington, Oregon,
Idaho, and and California. In addition, Fisher engages in Internet
business, radio stations and managed radio stations in Washington
and Montana. The company owns and operates 13 full power television
stations, 7 low power television stations, and 10 owned and managed
radio stations in the Western United States. Its television
stations reach 4.2 million households. Fisher Communications, Inc.
was founded in 1910 and is based in Seattle, Washington.
FSCI Tops Expectations Two Straight Times
FSCI has beaten the Zacks Consensus Estimate in each of the last
two quarters. The first beat came in the September 2011 quarter saw
when the company posted earnings of $0.17, $0.07 ahead of the Zacks
Consensus Estimate of $0.10. The stock then moved higher by 4%
after that 70% beat.
FSCI Recently Reported Earnings
On March 1, 2012 the company reported revenue of $46 million
roughly $5 million more than the Zacks Consensus Estimate and lower
than the $58 million reported in the year ago period. EPS of $0.72
was $0.41 ahead of the estimate or a 132% beat. As a result the
stock moved less than 1%.
The stock didn't move much on the huge beat due to what happened
in the year ago period. For the December 2010 quarter, the company
reported earnings of $0.93, $0.58 ahead of the Zacks Consensus
Estimate for a 165% beat. The stock was up 6% following the
earnings report. The beat in the final quarter of 2011 was smaller
than the beat in the 2010 in both absolute and percentage
terms.
Earnings Estimates Bumped Up
Following the most recent earnings report, analysts bumped up
their earnings estimates for 2012. The Zacks Consensus Estimate for
2012 EPS moved from $1.91 in February 2012 to the current level of
$2.22. That works out to an increase of 16%.
Valuations
FSCI has some very reasonable valuation metrics. The one that
stands out is the 39x trailing earnings multiple that is well above
the 17x industry average. Forward earnings are different picture,
coming in at 14x its just below the 14.6x industry average. Price
to book and price to sales both show the company trading at a
discount to the industry average.
The Chart
The chart shows that the stock has recently broke through an
upper resistance level. Having tested the $31 level two times in
the last 12 months, the stock has recently pushed ahead and is
poised to make new 12 month highs. With the 200 day moving average
providing support in the high 20's, the timing is good for
aggressive stock investors to participate in what looks to be a
rally for the stock. FSCI is a Zacks #1 Rank (Strong Buy).
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