Earnings Preview: Focus Media (FMCN)

Focus Media Holding Limited FMCN is currently higher on the session by 2.98%, trading at $18.65. The company is scheduled to report earnings today, after the closing bell. • Estimates The Street is looking for Q2 earnings per share of $0.23 on revenue of $142.65 million. These estimates have risen by $0.01 over the past 90 days. The Whisper number for FMCN is $0.15. • Guidance The Street is looking for Q3 EPS of $0.25 on revenue of $157.05 million. The full year 2010 estimates are $0.92 per share on revenue of $591.31 million; FY 2011 is at $1.17 per share on revenues of $699.03 billion. • Technical Picture FMCN has been rallying higher for the past twelve months, off of a low near $10.00. The stock has made strides to rally through $18.00 on more than one occasion in April of this year, but was unable to do so. Recently though, traders have pushed the stock through the $18.00 level and the stock is trading above its 50-day moving average once again. If the company’s report is bullish, the stock could jump off the $18.00 level; first resistance is $20.00, then $23.00. • Volatility Both historical volatility and implied volatility have been down-trending over the past three months after a spike higher in mid-May. Currently HI is at 29% and IV is at 44%. The front month $18.00 straddle is trading at 46.90%; the October $18.00 straddle is trading at 46.35% Focus Media Holding Limited is multi-platform digital media company. The networks operated by the company include liquid crystal display, display network, poster frame network, in-store network, Internet advertising services network, billboard network and movie theater advertising network.