iHeartMedia, Inc. (IHRT) shares are set to open sharply lower on Tuesday, plummeting 9.41% in pre-market trading following the release of its disappointing third-quarter financial results. The audio media company's stock, which had more than doubled year-to-date through Monday's close, is facing significant pressure as investors digest the latest earnings report.

The company reported a wider loss of $66.3 million for the third quarter, compared to a loss of $41.3 million in the same period last year. Revenue fell 1.1% to $997 million, slightly above analysts' expectations of $980.1 million. The decline was primarily attributed to lower political advertising sales, given that last year was a presidential election year, as well as a decrease in broadcast advertising due to uncertain market conditions.

Breaking down the revenue components, iHeartMedia's Multiplatform Group saw a 4.6% decline in revenue, reflecting the challenges in traditional broadcasting. However, the Digital Audio Group provided a bright spot, with revenue rising 14%, driven by increased demand for digital and podcast advertising. Despite this growth in digital, it wasn't enough to offset the overall revenue decline.

Looking ahead, iHeartMedia's guidance for the fourth quarter has failed to inspire confidence among investors. The company expects revenue to decline in the low-single digits, or increase in the mid-single digits when excluding its political business. This outlook, combined with the current quarter's results, appears to be driving the significant pre-market sell-off as shareholders reassess the company's near-term growth prospects in a challenging advertising market.