Stingray Group (TSE:RAY.A), a Canadian music, media, and technology company, reported its Fiscal Q3-2023 earnings results after market close today. While revenue came in at a record high and beat analysts’ expectations, earnings per share (EPS) did not.
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Stingray reported revenues of C$89.2 million compared to C$75 million last year. This represents an 18.9% growth rate, and the company attributes most of this growth to the “InStore Audio Network (ISAN) acquisition and our ability to streamline operations without impacting key growth vehicles.” Meanwhile, analysts were expecting revenue of C$84.7 million. Stingray also experienced 8.5% organic growth in Broadcast and Recurring Commercial Music Revenues.
On the other hand, adjusted EPS came in at C$0.24, flat year-over-year and lower than the consensus estimate of C$0.26.
Still, Stingray’s adjusted EBITDA grew by almost 21%, reaching a record C$34.5 million, and its free cash flow per share rose from C$0.21 to C$0.26. The company’s profitability also allowed it to repurchase $1.6 million worth of shares in the quarter, representing about 0.4% of its current market cap.
Is Stingray Group a Good Stock to Buy, According to Analysts?
According to analysts, RAY.A stock comes in as a Strong Buy based on four unanimous Buy ratings. The average Stingray stock price target comes in at C$6.88, implying 26.9% upside potential.
