Loop Media Provides Q3 Guidance Below Street Estimates On Macro Headwinds
Portfolio Pulse from Lekha Gupta
Loop Media Inc (LPTV) provided Q3 FY23 guidance, expecting revenue of $5.4M-$5.6M, below the consensus estimate of $8.3M, and an operating loss of $7.6M-$7.9M. The company projects a 20% reduction in SG&A expenses and a gross profit margin of 30%-33%. LPTV anticipates continued macro headwinds in digital advertising spending due to potential recession.
June 02, 2023 | 12:42 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Loop Media's Q3 FY23 guidance is below street estimates, with expected revenue of $5.4M-$5.6M and an operating loss of $7.6M-$7.9M. The company projects a 20% reduction in SG&A expenses and a gross profit margin of 30%-33%, but anticipates continued macro headwinds in digital advertising spending.
Loop Media's lower-than-expected Q3 FY23 guidance is likely to negatively impact its stock price in the short term. The company's projected reduction in SG&A expenses and improved gross profit margin may not be enough to offset the negative sentiment caused by the below-consensus revenue and operating loss expectations, as well as the anticipated macro headwinds in digital advertising spending due to potential recession.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100