Sinclair (NASDAQ:SBGI) Releases Earnings Results, Misses Estimates By $0.82 EPS

Sinclair (NASDAQ:SBGI) issued its earnings results on Wednesday. The company reported ($1.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.24) by ($0.82), FiscalAI reports. Sinclair had a negative return on equity of 12.62% and a net margin of 2.00%.The company had revenue of $840.00 million during the quarter, compared to analyst estimates of $838.99 million. During the same quarter in the previous year, the firm earned ($0.91) earnings per share. The business’s revenue was up 7.1% compared to the same quarter last year.

Here are the key takeaways from Sinclair’s conference call:

• Political advertising revenue rose 9% year over year to $59 million, and Sinclair raised its full-year political guidance to at least $375 million, citing strong early demand across competitive Senate, gubernatorial and House races.
• Sinclair increased full-year Adjusted EBITDA guidance to $730 million-$760 million despite lower core advertising expectations, supported by high-margin political revenue, year-to-date outperformance and continued expense discipline.
• The company reduced debt by approximately $320 million during the quarter and an additional $25 million after quarter-end, lowering interest expense and leaving its nearest material maturity in December 2029.
• Core advertising revenue declined 3% as political spending crowded out inventory and fuel, tariff and cost-inflation concerns pressured advertisers; Sinclair cut its full-year core advertising outlook by $40 million at the midpoint.
• Management expects the anticipated removal of the FCC’s 39% national ownership cap to make large-scale broadcast M&A less risky, while record World Cup audiences and cross-platform sports offerings supported advertiser demand.

Sinclair Stock Down 0.6%

Shares of SBGI traded down $0.08 during mid-day trading on Wednesday, reaching $13.91. The company’s stock had a trading volume of 488,268 shares, compared to its average volume of 485,983. The business has a fifty day moving average of $14.05 and a 200 day moving average of $14.35. The company has a market cap of $1.00 billion, a price-to-earnings ratio of 15.46 and a beta of 1.06. Sinclair has a 1 year low of $11.89 and a 1 year high of $17.88. The company has a quick ratio of 2.42, a current ratio of 2.42 and a debt-to-equity ratio of 11.10.

Analyst Ratings Changes

A number of equities analysts recently weighed in on the company. Wells Fargo & Company decreased their price target on Sinclair from $17.00 to $16.00 and set an “equal weight” rating for the company in a research report on Friday, May 1st. Deutsche Bank Aktiengesellschaft set a $17.00 price objective on Sinclair in a report on Wednesday, April 15th. Weiss Ratings raised shares of Sinclair from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Tuesday, June 30th. Guggenheim decreased their target price on shares of Sinclair from $20.00 to $19.00 and set a “buy” rating for the company in a report on Tuesday, May 5th. Finally, Wall Street Zen raised shares of Sinclair from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Two investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Sinclair has a consensus rating of “Hold” and an average price target of $19.20.

Insider Activity at Sinclair

In other news, Director Daniel C. Keith sold 17,000 shares of Sinclair stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $15.02, for a total transaction of $255,340.00. Following the transaction, the director owned 25,122 shares in the company, valued at approximately $377,332.44. The trade was a 40.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 42.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Sinclair

Institutional investors have recently bought and sold shares of the business. Geneos Wealth Management Inc. increased its holdings in shares of Sinclair by 142.0% in the 2nd quarter. Geneos Wealth Management Inc. now owns 1,815 shares of the company’s stock valued at $25,000 after purchasing an additional 1,065 shares during the period. Tower Research Capital LLC TRC boosted its holdings in shares of Sinclair by 175.6% during the second quarter. Tower Research Capital LLC TRC now owns 2,954 shares of the company’s stock worth $41,000 after purchasing an additional 1,882 shares during the period. Aquatic Capital Management LLC purchased a new position in Sinclair during the third quarter valued at approximately $48,000. Raymond James Financial Inc. purchased a new position in Sinclair during the second quarter valued at approximately $54,000. Finally, Headlands Technologies LLC increased its stake in Sinclair by 79.3% in the 2nd quarter. Headlands Technologies LLC now owns 6,773 shares of the company’s stock valued at $94,000 after buying an additional 2,996 shares during the period. 41.71% of the stock is currently owned by institutional investors and hedge funds.

Sinclair Company Profile

Sinclair Broadcast Group, Inc (NASDAQ: SBGI) is a media and entertainment company headquartered in Hunt Valley, Maryland. Founded in 1971 as a single UHF television station operator, Sinclair has grown through strategic acquisitions and organic expansion to become one of the largest owners of local television stations in the United States. Over its history, the company has pursued a diversified portfolio that includes both traditional broadcast assets and newer digital platforms.

At its core, Sinclair operates over 190 television stations affiliated with the major national broadcast networks, including ABC, CBS, NBC, Fox, The CW and MyNetworkTV.