Nexstar Media Group (NASDAQ:NXST) Releases Quarterly Earnings Results, Misses Estimates By $2.37 EPS

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

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 Stock Up 3.1%

NXST stock traded up $5.81 during mid-day trading on Friday, reaching $193.78. The company had a trading volume of 463,714 shares, compared to its average volume of 313,479. The firm has a fifty day simple moving average of $179.31 and a 200 day simple moving average of $200.88. The company has a debt-to-equity ratio of 5.53, a quick ratio of 1.76 and a current ratio of 1.76. The company has a market capitalization of $5.92 billion, a price-to-earnings ratio of 37.19, a price-to-earnings-growth ratio of 0.52 and a beta of 0.91. Nexstar Media Group has a fifty-two week low of $154.47 and a fifty-two week high of $254.30.

Nexstar Media Group Dividend Announcement

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

Analyst Upgrades and Downgrades

NXST has been the topic of several research reports. Weiss Ratings reissued a “hold (c)” rating on shares of Nexstar Media Group in a research note on Wednesday, May 27th. Wall Street Zen lowered shares of Nexstar Media Group from a “buy” rating to a “hold” rating in a research note on Sunday, July 12th. Zacks Research cut shares of Nexstar Media Group from a “strong-buy” rating to a “hold” rating in a report on Friday, July 10th. Barrington Research restated an “outperform” rating and issued a $290.00 price objective on shares of Nexstar Media Group in a report on Tuesday, April 28th. Finally, Wells Fargo & Company reduced their target price on shares of Nexstar Media Group from $253.00 to $249.00 and set an “overweight” rating on the stock in a report on Friday. Six investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, Nexstar Media Group presently has an average rating of “Moderate Buy” and an average target price of $259.00.

Insider Buying and Selling at Nexstar Media Group

In other news, CEO Perry A. Sook purchased 12,235 shares of the firm’s stock in a transaction that occurred on Friday, June 26th. The stock was bought at an average price of $162.26 per share, for a total transaction of $1,985,251.10. Following the completion of the purchase, the chief executive officer directly owned 899,044 shares of the company’s stock, valued at $145,878,879.44. The trade was a 1.38% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Dana Zimmer sold 915 shares of Nexstar Media Group stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $176.42, for a total transaction of $161,424.30. Following the completion of the transaction, the insider owned 5,738 shares of the company’s stock, valued at $1,012,297.96. This represents a 13.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 22,813 shares of company stock valued at $4,174,731. 7.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Nexstar Media Group

Hedge funds and other institutional investors have recently modified their holdings of the company. Measured Wealth Private Client Group LLC acquired a new position in shares of Nexstar Media Group during the third quarter worth $28,000. State of Wyoming acquired a new stake in Nexstar Media Group in the second quarter valued at $54,000. Danske Bank A S purchased a new stake in Nexstar Media Group during the 3rd quarter worth about $59,000. CIBC Private Wealth Group LLC lifted its holdings in Nexstar Media Group by 216.1% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 392 shares of the company’s stock worth $78,000 after buying an additional 268 shares during the last quarter. Finally, Geneos Wealth Management Inc. boosted its position in shares of Nexstar Media Group by 15.7% during the 2nd quarter. Geneos Wealth Management Inc. now owns 589 shares of the company’s stock worth $102,000 after acquiring an additional 80 shares in the last quarter. 95.30% of the stock is currently owned by institutional investors and hedge funds.

Nexstar Media Group Company Profile

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.