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

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

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 Price Performance

Shares of NXST traded up $5.81 during trading hours on Friday, hitting $193.78. 463,714 shares of the stock were exchanged, compared to its average volume of 313,479. The stock’s 50-day moving average price is $179.31 and its two-hundred day moving average price is $200.88. Nexstar Media Group has a 12-month low of $154.47 and a 12-month high of $254.30. 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 cap 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 Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be paid 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 dividend yield of 3.8%. Nexstar Media Group’s payout ratio is currently 142.80%.

Insider Activity at Nexstar Media Group

In other Nexstar Media Group news, CEO Perry A. Sook bought 12,235 shares of the company’s stock in a transaction dated Friday, June 26th. The stock was acquired at an average price of $162.26 per share, with a total value of $1,985,251.10. Following the completion of the acquisition, the chief executive officer directly owned 899,044 shares of the company’s stock, valued at $145,878,879.44. This represents a 1.38% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Gary Weitman sold 261 shares of the firm’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $170.81, for a total transaction of $44,581.41. Following the completion of the transaction, the insider directly owned 6,963 shares in the company, valued at approximately $1,189,350.03. This represents a 3.61% 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. Insiders have sold a total of 22,813 shares of company stock worth $4,174,731 over the last 90 days. Corporate insiders own 7.00% of the company’s stock.

Institutional Trading of Nexstar Media Group

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

Wall Street Analyst Weigh In

NXST has been the subject of a number of analyst reports. Wells Fargo & Company decreased their price objective on shares of Nexstar Media Group from $253.00 to $249.00 and set an “overweight” rating for the company in a research report on Friday. Barrington Research restated an “outperform” rating and issued a $290.00 price target on shares of Nexstar Media Group in a research note on Tuesday, April 28th. Deutsche Bank Aktiengesellschaft reduced their price target on Nexstar Media Group from $270.00 to $255.00 and set a “buy” rating for the company in a report on Monday, May 11th. Wall Street Zen downgraded Nexstar Media Group from a “buy” rating to a “hold” rating in a research report on Sunday, July 12th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Nexstar Media Group in a report on Wednesday, May 27th. Six research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $259.00.

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.