New York-based brand-management firm Sequential Brands Group Inc. saw triple-digit gains in revenues in the second quarter—beating Wall Street’s forecast—but its income declined to a net loss of $1.3 million.
Net Income: Net loss for the second quarter, ended June 30, 2015, was $1.3 million, compared to a net loss of $0.6 million in the prior year’s same quarter.
EPS: On a per share basis, losses were 3 cents compared to a diluted loss per share of 2 cents in the same year-ago quarter.
Net Revenue: Revenues for the second quarter increased 189 percent to $20.2 million compared to $7 million in the prior year’s same quarter.
Hit, Miss or Beat: Sequential’s performance beat Wall Street’s estimates for revenues but missed EPS estimates substantially. Analysts polled by Yahoo finance had predicted EPS of 5 cents and revenues of $16.85 million.
Executive Insights: “We are pleased to report strong results and continued momentum through the second quarter as we delivered significant revenue growth from our portfolio, fully integrated the Jessica Simpson brand into our platform, and signed a definitive agreement to acquire Martha Stewart Living Omnimedia. Looking ahead, we remain focused on executing our playbook as we aim to exceed our long-term revenue and EBITDA goals.”—Yehuda Shmidman, Sequential’s CEO, in a release.
Looking Ahead: The company reiterated its revenue guidance of $78 to $81 million with adjusted EBITDA of $48.5 to $50.5 million. This guidance does not include the pending impact of the acquisition of Martha Stewart Living Omnimedia.