Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Barrington Downgrades Fluent After Earnings Miss, Stock Drop

Courtesy of Benzinga

Barrington Downgrades Fluent After Earnings Miss, Stock Drop

Fluent Inc (NASDAQ: FLNT) fell short of top- and bottom-line third-quarter estimates. Some suspect the missed metrics herald longer-term underperformance.

The Rating

Barrington Research analysts James Goss and Patrick Sholl downgraded Fluent to Market Perform but maintained a $5 price target.

The Thesis

The decline in revenue compounded an increase in traffic acquisition costs. Together, the factors depressed margins.

“The expansion into different media channels, while potentially beneficial in the long term, is placing additional pressures on margins and increased caution on media spend,” the analysts wrote in a note. Consequently, management cut its 2019 revenue guidance to signal accelerated decline.

Despite the top-line struggles, Barrington is enthused by Fluent’s efforts to expand its consumer data, which improves its ability to tailor marketing. “First party data provides flexibility and multiple forms of monetization,” the analysts wrote, noting that Fluent can both sell the data and use it to inform third-party marketing services.

Data won’t necessarily salvage the profit margins, though.

“Unfortunately, Fluent has been in a transitional state that has involved creation of appropriate verticals for targeting calculated business bets, not all of which have worked out as planned,” the analysts wrote. “…Given these curtailed expectations and lack of visibility as to the timing of a turnaround and the specifics of future business plans, we feel it is appropriate to cut our investment rating to market perform.”

Price Action

At time of publication, shares traded down 36% at $1.61.

Related Links:

Twitter Launches 6-Second Video Bid Unit For Advertisers

Criteo Files Complaint Against Facebook With French Competition Authority

Latest Ratings for FLNT

Date Firm Action From To
Nov 2019 Downgrades Outperform Market Perform

View More Analyst Ratings for FLNT


View the Latest Analyst Ratings

Posted-In: Barrington ResearchAnalyst Color Earnings News Guidance Downgrades Price Target Analyst Ratings Best of Benzinga


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!