Focus Media Earnings: Increased Profit Helps Beat the Street

Focus Media Holding Limited (NASDAQ:FMCN) reported net income above Wall Street’s expectations for the first quarter. Focus Media Holding is engaged in selling out-of-home television advertising time slots on its network of flat-panel television advertising displays located in high traffic areas.

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Focus Media Holding Limited Earnings Cheat Sheet

Results: Net income for Focus Media Holding Limited rose to $37.9 million (28 cents per share) vs. $20.5 million (15 cents per share) in the same quarter a year earlier. This marks a rise of 84.5% from the year-earlier quarter.

Revenue: Rose 36.2% to $199.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Focus Media Holding Limited reported adjusted net income of 46 cents per share. By that measure, the company beat the mean estimate of 30 cents per share.

Quoting Management: Jason Jiang, Chairman and Chief Executive Officer of Focus Media said, “In the first quarter of 2012, our year-on-year revenue growth was mainly driven by the strength of our poster frame and in-store networks due to their exposure to promotion spending budgets which tend to be less affected by macroeconomic uncertainty, mitigating slower growth of our LCD network which was affected by cut back on branding budgets, which tend to be impacted by macroeconomic uncertainties. We have since second quarter of 2012 seen some form of stabilization in the advertising environment including branding spending, despite we have yet to see return to normalization. We remain confident and will continue to strive to achieve our business objectives for the year.”

Key Stats:

The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 36.1%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 60.6% from the year earlier quarter.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 8 cents in the fourth quarter of the last fiscal year, by 10 cents in the third quarter of the last fiscal year, and by 7 cents in the second quarter of the last fiscal year.

Looking Forward: The average estimate for the second quarter remains unchanged at 43 cents a share. For the fiscal year, the average estimate has moved up from $1.97 a share to $2.02 over the last sixty days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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