Hi there,
Stingray is a small cap that has is engaged in music distribution through a variety of platforms. I owns more than 100 radio stations, television specialty programs and multiplie apps and targets busineses through additional segments such as in-store commerical music, digit signage and on-board entertainment for planes, trains and cars. It has its hands in just about everything.
Unfortunately, COVID-19 is likely to have considerable impacts on the company. Consumers aren't travelling, and many commercial buildings were shut for the majority of Q2. This means that its BTB segments are likely to suffer. It is also reliant on ad spending, and this is an area where corporations have trimmed costs.
Leaving COVID-19 aside, and although it has been growing, the company's share price has been in a downward trend for three years. This is likely a result of inconsistent earnings. On the bright side, Stingray has a growth through acquisition strategy and revenue has been a steady upward trend. It is also a Canadian Dividend Aristocrat having raised dividends for five consecutive years.
Long-term, I am unsure of the company's prospects given the uncertainty. In the short-term, expect volatility. The impacts of COVID-19 are not yet known but on the bright side, the company has not cut the dividend. This is perhaps a sign that the company is handling the pandemic better than expected. Investors will get more insights along with quarter results next week (Aug 5). Speaking of which, the company has a questionable history of execution. Over the past twelve quarters, it has missed earnings estimates 10 times. Only once did the company beat expectations.
Considering this, the estimates for negative earnings growth in 2020 (-6.6%) and 2021 (-3.2%) doesn't exactly instill confidence. Revenue is also expected to drop 8.2% and -0.1% over the next two years.
Mat