Gray Media (NYSE:GTN) Releases Quarterly Earnings Results, Beats Expectations By $0.29 EPS

Gray Media (NYSE:GTN) released its quarterly earnings data on Friday. The company reported $0.21 EPS for the quarter, beating the consensus estimate of ($0.08) by $0.29, FiscalAI reports. Gray Media had a negative return on equity of 3.07% and a negative net margin of 3.12%.The firm had revenue of $839.00 million during the quarter, compared to the consensus estimate of $795.13 million. During the same quarter in the previous year, the company posted ($0.71) earnings per share. The company’s quarterly revenue was up 8.7% on a year-over-year basis.

Here are the key takeaways from Gray Media’s conference call:

• Second-quarter results exceeded guidance: Revenue rose 9% year over year to $839 million, while adjusted EBITDA reached $214 million. Political revenue was $83 million, above the company’s $60 million–$70 million outlook.
• Gray expects strong political advertising momentum, forecasting $165 million–$185 million of political revenue in Q3 amid significant exposure to competitive Senate, gubernatorial, and House races. Management plans to use substantially all incremental political cash flow to reduce debt.
• The company continued balance-sheet management by redeeming $50 million of preferred equity, repurchasing $120 million of debt, and authorizing up to $250 million more in debt purchases. Management said refinancing and repurchases could reduce annual interest expense by more than $30 million.
• Net retransmission revenue reached $150 million and is expected to accelerate into 2027 as newly acquired stations contribute and existing contracts remain in place. Management expects organic growth in the low single digits, plus additional acquisition-related revenue.
• Core advertising remained soft, declining 1% as reported and an estimated mid-single digits excluding acquisitions, with additional pressure from political crowd-out and an uncertain macroeconomic environment. Gray expects Q3 core advertising to be flat as reported only because acquisition growth offsets underlying weakness.

Gray Media Stock Up 24.8%

GTN traded up $1.06 during mid-day trading on Friday, reaching $5.34. 4,321,859 shares of the stock were exchanged, compared to its average volume of 1,110,169. Gray Media has a 1 year low of $3.50 and a 1 year high of $6.43. The company has a debt-to-equity ratio of 2.72, a quick ratio of 1.20 and a current ratio of 1.20. The stock has a market capitalization of $548.72 million, a PE ratio of -3.49 and a beta of 0.94. The company has a 50 day moving average price of $4.01 and a two-hundred day moving average price of $4.52.

Gray Media Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be issued a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a yield of 6.0%. The ex-dividend date of this dividend is Tuesday, September 15th. Gray Media’s payout ratio is currently -52.46%.

Key Headlines Impacting Gray Media

Here are the key news stories impacting Gray Media this week:

• Positive Sentiment: Quarterly earnings significantly exceeded expectations: Gray Media reported adjusted earnings of $0.21 per share, compared with the consensus estimate of a $0.08 per-share loss and a $0.42 per-share loss in the year-ago quarter. Gray Media Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Revenue also beat estimates and grew year over year: Second-quarter revenue was $839.0 million, above the $795.1 million consensus forecast and up 8.7% from the prior-year period. Management said the results are beginning to reflect benefits from its merger-and-acquisition activity. Gray Media Announces Second Quarter Financial Results
• Positive Sentiment: Third-quarter revenue guidance was well above expectations: Gray projected revenue of $935 million to $965 million, compared with analyst expectations of approximately $892 million. The company did not provide a readable EPS guidance figure in the release data.
• Positive Sentiment: Dividend maintained: Gray declared a quarterly cash dividend of $0.08 per share, payable September 30 to shareholders of record on September 15. The annualized payout is $0.32 per share, representing an indicated yield of roughly 6% based on the cited share price. Gray Announces Quarterly Cash Dividend
• Neutral Sentiment: Financial risks remain: Despite the quarterly beat, Gray reported a negative net margin and negative return on equity, while its balance sheet carries relatively high leverage. Investors may therefore focus on whether stronger revenue and M&A-related benefits can translate into sustainable cash flow and profitability.

Insider Activity at Gray Media

In other news, Director Richard Lee Boger sold 57,000 shares of the stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $4.40, for a total value of $250,800.00. Following the completion of the sale, the director owned 4,591 shares in the company, valued at $20,200.40. This represents a 92.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 8.95% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Gray Media

A number of institutional investors have recently added to or reduced their stakes in the company. Acadian Asset Management LLC bought a new position in shares of Gray Media during the 1st quarter worth approximately $28,000. CANADA LIFE ASSURANCE Co grew its holdings in shares of Gray Media by 68.2% in the fourth quarter. CANADA LIFE ASSURANCE Co now owns 10,401 shares of the company’s stock valued at $50,000 after acquiring an additional 4,217 shares in the last quarter. Engineers Gate Manager LP bought a new position in shares of Gray Media in the fourth quarter valued at approximately $55,000. Dynamic Technology Lab Private Ltd purchased a new stake in shares of Gray Media during the fourth quarter valued at approximately $63,000. Finally, Squarepoint Ops LLC purchased a new stake in shares of Gray Media during the fourth quarter valued at approximately $71,000. 78.64% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

GTN has been the subject of a number of recent research reports. Barrington Research restated an “outperform” rating and set a $6.50 price target on shares of Gray Media in a research note on Tuesday, April 28th. Weiss Ratings downgraded shares of Gray Media from a “sell (d+)” rating to a “sell (d)” rating in a report on Friday, May 15th. Wall Street Zen raised shares of Gray Media from a “sell” rating to a “hold” rating in a research note on Sunday, May 17th. Finally, Guggenheim reduced their price objective on shares of Gray Media from $8.00 to $7.00 and set a “buy” rating for the company in a report on Friday, May 15th. Three investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Gray Media currently has a consensus rating of “Hold” and a consensus price target of $7.88.

Gray Media Company Profile

Gray Media (NYSE:GTN) is a U.S.-based broadcasting and digital media company that owns and operates a portfolio of local television stations and associated digital platforms. The company’s core business centers on delivering local news, sports and entertainment programming through its network-affiliated broadcast outlets. In addition to traditional over-the-air distribution, Gray Media supports multi-platform video streaming and on-demand services for audiences across its markets.

Gray Media’s television stations carry network programming from major national broadcasters, including ABC, CBS, NBC, Fox and The CW, and often feature locally produced news and public affairs content.