Earnings To Watch: Nexstar Media (NXST) Reports Q1 Results Tomorrow

Local broadcasting and digital media company Nexstar (NASDAQ:NXST) will be reporting results tomorrow before the bell. Here's what to look for.

Nexstar Media met analysts' revenue expectations last quarter, reporting revenues of $1.30 billion, down 12.3% year on year. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

Is Nexstar Media a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Nexstar Media's revenue to grow 2.6% year on year to $1.29 billion, slowing from the 3.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.72 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Nexstar Media has missed Wall Street's revenue estimates four times over the last two years.

Looking at Nexstar Media's peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Paramount delivered year-on-year revenue growth of 5.8%, meeting analysts' expectations, and Gray Television reported revenues up 2.7%, in line with consensus estimates. Paramount traded down 7.2% following the results.

Read our full analysis of Paramount's results here and Gray Television's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share prices down 2.1% on average over the last month. Nexstar Media is down 1.6% during the same time and is heading into earnings with an average analyst price target of $199.1 (compared to the current share price of $166.4).

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