Nexstar Media Group beats Q2 revenue expectations, net income drops
Overview
Nexstar Q2 revenue largely flat at $1.23 bln, beating analyst expectations, per LSEG data
Net income for Q2 falls 14.2% yr/yr, impacted by lower political ad revenue
Adjusted EBITDA for Q2 declines 6% yr/yr, reflecting reduced equity investment income
Outlook
Nexstar optimistic about regulatory reform and distribution renewals
Company expects to capitalize on 2026 mid-term election advertising
Nexstar sees opportunity in expanding sports programming at The CW
Company anticipates growth from NewsNation's increasing viewership
Result Drivers
POLITICAL ADVERTISING - Revenue decline attributed to lower political advertising in non-election year
NETWORK GROWTH - The CW and NewsNation's audience growth offset some revenue declines
EXPENSE MANAGEMENT - Strong expense management partially mitigated revenue shortfall
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $1.23 bln | $1.21 bln (8 Analysts) |
Q2 EPS | $3.06 | ||
Q2 Net Income | $91 mln | ||
Q2 Adjusted EBITDA | $389 mln | ||
Q2 Income from Operations | $213 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the broadcasting peer group is "buy"
Wall Street's median 12-month price target for Nexstar Media Group Inc is $200.00, about 6.5% above its August 6 closing price of $186.99
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago
Press Release:
