Analysts estimate that the company will earn $0.85 per share this year, which would be up from $0.61 per share last year. Next year, earnings are forecasted to be $1.30 per share. Over the next five years, analysts expect 12.5% annual growth. The company badly missed earnings estimates for the quarter ending in March of 2013 by losing $0.20 per share compared with an estimate calling for $0.07 per share in earnings. Despite this earnings miss, the company has recently been upgraded by more than one analyst.
Carmike Cinemas, Inc. (NASDAQ:CKEC) owns the Rave cinemas, and it recently agreed to have MovieTickets.com sell advance tickets for these locations. May and June will include many large movie releases, which some predict will fuel sales increases for Carmike.
In its most recent earnings report, higher expenses lead to the unexpected loss in earnings per share. Average admissions per patron and average concessions dollar value per patron increased nicely in the quarter ending in March of 2013 compared to the quarter ending in March of 2012. Total admission revenue declined year over year for this quarter, but total concession revenue increased. Strong performance in the upcoming movie releases for its cinemas is a key factor necessary to bring the company back to profitability.
Nexstar Broadcasting Group, Inc. (NASDAQ:NXST) is on a Roll
Nexstar Broadcasting Group, Inc. (NASDAQ:NXST) has been the strongest performing stock out of these three over the past year. It is currently trading at $27.26 per share, which is a far cry from its 52 week low of $6 per share. It also has a current dividend yield of 1.7%.
Analysts estimate that earnings will rise to $1.10 per share this year, which would be up from $0.84 per share last year. Next year, analysts call for an astonishing earnings per share number of $3.01. Over the next five years, it is pegged for 2% annual growth in income as it looks like the current estimates are not calling for much of an increase after next year.
In the quarter that ended in March of 2013, earnings came in at $0.02 per share, which was below the estimate of $0.12 per share. Despite this earnings miss, Wells Fargo notes that the company has a $5 per share free cash flow number which shows the company’s strong value. Revenue for the quarter ending in March of 2013 rose to a record $112 million, which represented a year over year increase of 34.2%.
Station revenue, fueled by core television ad revenue, rose by a stellar 40% year over year in the quarter ending in March of 2013. Retransmission fees and e-Media revenue rose 62.7% year over year to $30 million. Going forward, continuing this overall increase in revenue as well as successfully integrating its recent acquisitions are keys to its success. The acquisition of 19 additional television stations will have to be successfully managed and integrated.
Conclusion
These stocks clearly all have upward momentum in share price going for them as well as strong fundamentals. An earnings miss for any of them going forward could lead to a drop in price if future guidance cannot offset that effect.
Despite the risks, I think these are great stocks overall for the long-term. The one I like here the most is American Axle & Manufact. Holdings, Inc. (NYSE:AXL). I believe the American automotive market will continue to improve, as the nation is committed to seeing the automotive industry succeed.
The staggering revenue growth of Nexstar is hard to ignore also. I would look for a short-term dip in price though before I jumped in.
Anthony Parsons has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
The article 3 Small Cap Stocks With Good Value originally appeared on Fool.com.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
