Nexstar Media Group (NASDAQ:NXST) Announces Earnings Results, Misses Expectations By $2.37 EPS

Nexstar Media Group (NASDAQ:NXST) issued its quarterly earnings data on Thursday. The company reported $3.61 earnings per share (EPS) for the quarter, missing the consensus estimate of $5.98 by ($2.37), Briefing.com reports. The business had revenue of $1.99 billion during the quarter, compared to the consensus estimate of $1.97 billion. Nexstar Media Group had a net margin of 3.20% and a return on equity of 24.26%. The company’s revenue for the quarter was up 62.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $3.06 EPS.

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

• Record Q2 results included $1.99 billion in revenue, $633 million in adjusted EBITDA, and $238 million in adjusted free cash flow, with TEGNA, political advertising, FIFA World Cup advertising, and cost efficiencies driving performance.
• Political advertising is tracking ahead of internal expectations, with Q2 combined political revenue up 99% versus 2024; management expects Ohio’s competitive Senate and gubernatorial races to drive potential Q3 upside.
• The CW is on track to reach profitability in Q4, while sports programming, NASCAR, WWE, and new ESPN and Roku distribution agreements are improving viewership, advertiser demand, and reach.
• Combined non-political advertising declined 5.8% in Q2 amid crowd-out from political spending, economic softness, and competition from connected-TV and digital inventory; Q3 is expected to remain down mid-single digits.
• Nexstar faces continued litigation and restrictions on integrating TEGNA, while debt rose to $11.7 billion and quarterly interest expense increased to approximately $185 million; management plans to prioritize debt repayment over share repurchases.

Nexstar Media Group Trading Up 3.1%

Shares of Nexstar Media Group stock traded up $5.81 during trading on Friday, reaching $193.78. 463,714 shares of the company were exchanged, compared to its average volume of 313,479. The company has a quick ratio of 1.76, a current ratio of 1.76 and a debt-to-equity ratio of 5.53. Nexstar Media Group has a twelve month low of $154.47 and a twelve month high of $254.30. The business has a 50-day moving average price of $179.31 and a 200-day moving average price of $200.88. The firm has a market capitalization of $5.92 billion, a price-to-earnings ratio of 37.19, a P/E/G ratio of 0.52 and a beta of 0.91.

Nexstar Media Group Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be given a $1.86 dividend. This represents a $7.44 annualized dividend and a dividend yield of 3.8%. The ex-dividend date is Friday, August 14th. Nexstar Media Group’s dividend payout ratio (DPR) is currently 142.80%.

Analysts Set New Price Targets

NXST has been the subject of a number of research analyst reports. Barrington Research reaffirmed an “outperform” rating and issued a $290.00 price target on shares of Nexstar Media Group in a report on Tuesday, April 28th. Zacks Research cut shares of Nexstar Media Group from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 10th. Citigroup raised shares of Nexstar Media Group from a “neutral” rating to a “buy” rating and dropped their target price for the stock from $252.00 to $220.00 in a research note on Friday, April 10th. Wall Street Zen downgraded Nexstar Media Group from a “buy” rating to a “hold” rating in a report on Sunday, July 12th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Nexstar Media Group in a research note on Wednesday, May 27th. Six research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, Nexstar Media Group currently has a consensus rating of “Moderate Buy” and an average price target of $259.00.

Insider Activity

In other news, insider Sean Compton sold 5,000 shares of the business’s stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $196.00, for a total transaction of $980,000.00. Following the completion of the transaction, the insider directly owned 11,252 shares in the company, valued at approximately $2,205,392. The trade was a 30.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Dana Zimmer sold 915 shares of the company’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $176.42, for a total value of $161,424.30. Following the completion of the sale, the insider directly owned 5,738 shares of the company’s stock, valued at approximately $1,012,297.96. This trade represents a 13.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 22,813 shares of company stock valued at $4,174,731. Insiders own 7.00% of the company’s stock.

Hedge Funds Weigh In On Nexstar Media Group

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Geneos Wealth Management Inc. lifted its position in Nexstar Media Group by 15.7% during the second quarter. Geneos Wealth Management Inc. now owns 589 shares of the company’s stock valued at $102,000 after acquiring an additional 80 shares during the last quarter. HighTower Advisors LLC raised its stake in Nexstar Media Group by 3.2% in the 4th quarter. HighTower Advisors LLC now owns 2,975 shares of the company’s stock worth $604,000 after acquiring an additional 93 shares during the last quarter. CIBC Private Wealth Group LLC lifted its position in Nexstar Media Group by 35.7% during the 4th quarter. CIBC Private Wealth Group LLC now owns 532 shares of the company’s stock worth $108,000 after acquiring an additional 140 shares during the period. Measured Wealth Private Client Group LLC acquired a new stake in Nexstar Media Group during the 3rd quarter worth about $28,000. Finally, Northwestern Mutual Wealth Management Co. grew its stake in Nexstar Media Group by 10.6% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 1,734 shares of the company’s stock valued at $343,000 after purchasing an additional 166 shares during the last quarter. 95.30% of the stock is owned by institutional investors.

About Nexstar Media Group

Nexstar Media Group, Inc is a diversified American media company engaged primarily in the ownership, operation and strategic affiliation of local television stations, digital platforms and cable networks. The company provides a range of broadcast content, including local news, sports coverage, entertainment programming and syndicated shows, reaching audiences in more than 100 television markets across the United States.

Founded in 1996 by entrepreneur Perry Sook and headquartered in Irving, Texas, Nexstar has built its presence through organic growth and a series of high-profile acquisitions.