Tribune shares retreat the most in two weeks on Wednesday, broadcaster reports a surprise first-quarter loss

Tribune Media Co (TRCO) reported a loss during the first quarter of 2017, due to lower advertising revenue from its TV and entertainment division as well as due to an impairment charge.

Tribune Medias shares registered their largest daily loss since April 24th during Wednesdays trading session. The stock went down 0.90% ($0.38) to $41.82, after touching an intraday low at $41.78, or a price level not seen since May 5th ($39.31). In the week ended on May 7th the shares of the broadcaster company added 10.20% to their market value compared to a week ago, which marked the best performance since the week ended on November 13th 2016. However, the stock has pared its advance to 14.39% so far during the current month, following a 1.91% slump in April. The latter has been the first monthly retreat since January. For the entire past year, Tribune Medias shares gained 3.46%.

On May 8th Sinclair Broadcast Group Inc revealed its intention to acquire Tribune in a deal estimated at approximately $3.9 billion. The news followed a vote by the US Federal Communications Commission to reverse a decision from last year, which restricts the number of stations a broadcaster is allowed to purchase.

Tribunes revenue from its television and entertainment business shrank to $436.0 million during the quarter ended on March 31st from $455.9 million during the same period a year earlier.

At the same time, the companys operating revenue was reported to have dropped to $439.9 million during the first quarter of 2017 from $468.5 million a year ago.

The company posted a net loss of $85.6 million ($0.99 per share) during the latest quarter. In comparison, it reported a net income of $11.1 million ($0.12 per share) during the same three-month period a year ago.

Quarterly loss, excluding special items, was reported at $0.07 per share. On the other hand, the median forecast by analysts had pointed to quarterly earnings of $0.07 per share, according to Thomson Reuters I/B/E/S.

The broadcaster also reported an impairment charge at the amount of $122 million.

According to CNN Money, the 5 analysts, offering 12-month forecasts regarding Tribune Media Co’s stock price, have a median target of $37.00, with a high estimate of $54.00 and a low estimate of $35.00. The median estimate is an 11.53% decrease compared to the closing price of $41.82 on May 10th.

The same media also reported that 4 out of 7 surveyed investment analysts had rated Tribune Media Co’s stock as “Hold”, while 1 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Tribune stock are presented as follows:

R1 – $41.88
R2 – $41.94
R3 (Range Resistance – Sell) – $42.00
R4 (Long Breakout) – $42.18
R5 (Breakout Target 1) – $42.39
R6 (Breakout Target 2) – $42.47

S1 – $41.76
S2 – $41.70
S3 (Range Support – Buy) – $41.64
S4 (Short Breakout) – $41.46
S5 (Breakout Target 1) – $41.25
S6 (Breakout Target 2) – $41.17

By using the traditional method of calculation, the weekly levels of importance for Tribune Media Co (TRCO) are presented as follows:

Central Pivot Point – $39.69
R1 – $41.10
R2 – $41.92
R3 – $43.33
R4 – $44.75

S1 – $38.87
S2 – $37.46
S3 – $36.64
S4 – $35.83