Millennial Media (MM) Numbers Cut at Canaccord Genuity Despite Strong End to 2014

Canaccord Genuity analyst Michael Graham reiterated a Hold rating and trimmed his price target on Millennial Media (NYSE: MM) to $2.50 (from $3.00) following "solid" Q4 results.

"Millennial‘s Q4 results were solid with revenue beating our estimate decisively, with most of the associated gross profit upside falling directly to EBITDA. Millennial completed the acquisition of Nexage, setting the stage for a renewed push into the mobile programmatic market. While new management appears to be steering the business more tightly, Q1 guidance implies both negative seasonality and the need for strong execution to allow for the sequential growth required to hit full year guidance. While we are encouraged by the progress shown in Q4, we believe our HOLD rating remains appropriate pending further evidence of Nexage integration and progress in the programmatic segment."

Bullish: Revenue of $86M beat our $73M estimate soundly; full year 2015 revenue guidance was above our estimate; better disclosures around revenue break-down brings more transparency.

Bearish: Q1 guidance well below our estimate; high bar for execution in 2H'15 needed to hit full year revenue targets.

The firm lowered 2015 EBITDA estimates from ($11.6M) to ($25.0M) and FY 2016 EBITDA from $1.5 to ($0.00).

For an analyst ratings summary and ratings history on Millennial Media click here. For more ratings news on Millennial Media click here.

Shares of Millennial Media closed at $1.59 yesterday.

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