Q2 Earnings Highs And Lows: Gray Television (NYSE:GTN) Vs The Rest Of The Broadcasting Stocks
Wrapping up Q2 earnings, we look at the numbers and key takeaways for the broadcasting stocks, including Gray Television (NYSE:GTN) and its peers.
Broadcasting companies have been facing secular headwinds in the form of consumers abandoning traditional television and radio in favor of streaming services. As a result, many broadcasting companies have evolved by forming distribution agreements with major streaming platforms so they can get in on part of the action, but will these subscription revenues be as high quality and high margin as their legacy revenues? Only time will tell which of these broadcasters will survive the sea changes of technological advancement and fragmenting consumer attention.
The 9 broadcasting stocks we track reported a slower Q2. As a group, revenues missed analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was in line.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility. However, broadcasting stocks have held steady amidst all this with share prices up 2.2% on average since the latest earnings results.
Gray Television (NYSE:GTN)
Specializing in local media coverage, Gray Television (NYSE:GTN) is a broadcast company supplying digital media to various markets in the United States.
Gray Television reported revenues of $826 million, up 1.6% year on year. This print fell short of analysts’ expectations by 1.7%. Overall, it was a weak quarter for the company with a miss of analysts’ earnings estimates.
Unsurprisingly, the stock is down 1.1% since reporting and currently trades at $5.21.
Read our full report on Gray Television here, it’s free.
Best Q2: Sinclair (NASDAQ:SBGI)
Founded in 1971, Sinclair (NASDAQ:SBGI) is an American media company operating numerous television stations and providing multi-platform broadcasting services.
Sinclair reported revenues of $829 million, up 7.9% year on year, falling short of analysts’ expectations by 1.1%. However, it was still a decent quarter for the company with an impressive beat of analysts’ earnings estimates but a miss of analysts’ Distribution revenue estimates.
Sinclair achieved the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 7.4% since reporting. It currently trades at $14.01.
Is now the time to buy Sinclair? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Nexstar Media (NASDAQ:NXST)
Founded in 1996, Nexstar (NASDAQ:NXST) is an American media company operating numerous local television stations and digital media outlets across the country.
Nexstar Media reported revenues of $1.27 billion, up 2.3% year on year, falling short of analysts’ expectations by 1%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
The stock is flat since the results and currently trades at $170.77.
Read our full analysis of Nexstar Media’s results here.
E.W. Scripps (NASDAQ:SSP)
Founded as a chain of daily newspapers, E.W. Scripps (NASDAQ:SSP) is a diversified media enterprise operating a range of local television stations, national networks, and digital media platforms.
E.W. Scripps reported revenues of $573.6 million, down 1.6% year on year, falling short of analysts’ expectations by 2%. Revenue aside, it was a weak quarter for the company with a miss of analysts’ EPS estimates.
The stock is down 27.6% since reporting and currently trades at $2.15.
Read our full, actionable report on E.W. Scripps here, it’s free.
AMC Networks (NASDAQ:AMCX)
Originally the joint-venture of four cable television companies, AMC Networks (NASDAQ:AMCX) is a broadcaster producing a diverse range of television shows and movies.
AMC Networks reported revenues of $625.9 million, down 7.8% year on year, surpassing analysts’ expectations by 4.1%. Taking a step back, it was a mixed quarter for the company with a miss of analysts’ earnings estimates.
AMC Networks pulled off the biggest analyst estimates beat among its peers. The stock is up 1.1% since reporting and currently trades at $10.43.
Read our full, actionable report on AMC Networks here, it’s free.
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