Piper Jaffray Comments On AirMedia's Solid Results But Disappointing Guidance

In a report published by Piper Jaffray, AirMedia Group AMCN saw solid results but disappointing guidance.

Piper Jaffray said that AirMedia reported solid 4Q10 net revenue of $68.7M (+55% YoY) versus Piper's estimate of $67.6M and consensus of $67.8M. “Diluted EPS per ADS was $0.10, beating our estimate of $0.05 and consensus of $0.08. Revenue growth was driven by an improved ad market backdrop, strong consumer spending trends for air travel, and improved utilization rates for AirMedia's inventory. While pricing increased sequentially across all major product lines, year-over-year pricing trends were mixed. Management guided 1Q11 total revenues of $58M-$60M, below our estimate of $64.7M (though guidance does not include potential revenues from the newly signed inventory at Terminal 3 of Beijing Capital International Airport). In addition, concession fee guidance of $38.1M was above our estimate of $35.1M as it includes recent Beijing Airport inventory.”

AirMedia closed yesterday at $5.69.