Saga Communications Q2 revenue falls 6.5% on higher expenses

Overview

• U.S. radio broadcaster's Q2 revenue fell 6.5% yr/yr to $26.4 mln

• Q2 diluted EPS was $0.15, down from $0.18 a year earlier

• Higher station operating expenses partly due to non-cash rent expense from tower sale

Outlook

• Saga expects to spend $3.0–$3.5 mln on capital expenditures during 2026

• Company expects about $154,000 per qtr of non-cash rent expense for lease agreements

• Company expects about $127,000 per qtr of non-cash interest income in 2026

Result Drivers

• NON-CASH RENT EXPENSE - Station operating expenses rose due to non-cash rent expense related to the sale and leaseback of telecommunications towers

• HIGHER OPERATING EXPENSES - Station operating expense increased 5.4% yr/yr in Q2

Company press release: ID:nGNX56s6bx

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the broadcasting peer group is "buy."

• Wall Street's median 12-month price target for Saga Communications Inc is $14.00, about 37.9% above its August 12 closing price of $10.15

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)