Benchmark Company Reiterates Buy Rating, $10 PT on Belo Corp.

In a report published Friday, Benchmark Company reiterated its Buy rating and $10.00 price target on Belo Corp. BLC. Benchmark Company noted, “Belo (BLC-Buy, PT $10) management updated its 4Q revenue guidance at a recent investor conference, projecting total spot revenues to be up 13-14% vs. their previous estimate of 11-13%, including an expected $61 million in political advertising vs. their previous guidance of $58-59 million. However, we had anticipated slightly higher results. As a result, we now project total revenues of $204 million vs. our previously projected total revenue of $207 million. We attribute the shortfall primarily to likely crowding out of television advertising leading up to the election. Post election television ad revenues are ahead for December. Combined station and corporate operating costs are expected to be up 8% due to higher revenue related to variable costs, investment in new business initiatives and the absence of $2.4 million in one-time credits. We look for 4Q12 EPS of $0.35 excluding a $5.5 million ($0.03 per share) debt redemption charge related to Belo's redemption of $175.9 million of notes due May 2013. Adjusted EBITDA is expected to be $83 million, up 21% y/y.” Belo Corp. closed on Thursday at $7.39.