Nexstar Media Group (NASDAQ:NXST) Issues Quarterly Earnings Results

Nexstar Media Group (NASDAQ:NXST) announced 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 net margin of 3.20% and a return on equity of 24.26%. The company had revenue of $1.99 billion for the quarter, compared to analyst estimates of $1.97 billion. During the same quarter last year, the business earned $3.06 EPS. The company’s revenue for the quarter 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 Price Performance

NXST traded up $5.81 during midday trading on Friday, reaching $193.78. 463,714 shares of the company’s stock 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. The business has a 50-day simple moving average of $179.31 and a two-hundred day simple moving average of $200.88. The firm 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 one year low of $154.47 and a one year high of $254.30.

Nexstar Media Group Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be paid a dividend of $1.86 per share. The ex-dividend date 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%.

Insider Buying and Selling

In other Nexstar Media Group news, insider Brett Jenkins sold 301 shares of Nexstar Media Group stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $170.81, for a total transaction of $51,413.81. Following the completion of the transaction, the insider directly owned 28,798 shares of the company’s stock, valued at approximately $4,918,986.38. This trade represents a 1.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Perry A. Sook bought 12,235 shares of the stock in a transaction dated Friday, June 26th. The stock was purchased at an average cost of $162.26 per share, for a total transaction of $1,985,251.10. Following the acquisition, the chief executive officer owned 899,044 shares in the company, valued at $145,878,879.44. The trade was a 1.38% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders sold 22,813 shares of company stock worth $4,174,731. Insiders own 7.00% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of NXST. AQR Capital Management LLC increased its holdings in shares of Nexstar Media Group by 118.1% in the second quarter. AQR Capital Management LLC now owns 543,612 shares of the company’s stock worth $93,795,000 after acquiring an additional 294,308 shares in the last quarter. Alliancebernstein L.P. lifted its holdings in shares of Nexstar Media Group by 27.1% during the 2nd quarter. Alliancebernstein L.P. now owns 882,322 shares of the company’s stock valued at $152,598,000 after purchasing an additional 187,864 shares in the last quarter. Millennium Management LLC grew its position in shares of Nexstar Media Group by 104.2% in the 4th quarter. Millennium Management LLC now owns 319,376 shares of the company’s stock valued at $64,849,000 after purchasing an additional 162,963 shares during the period. JPMorgan Chase & Co. grew its position in shares of Nexstar Media Group by 42.0% in the 4th quarter. JPMorgan Chase & Co. now owns 530,964 shares of the company’s stock valued at $107,812,000 after purchasing an additional 156,937 shares during the period. Finally, Walleye Capital LLC bought a new stake in Nexstar Media Group during the 4th quarter worth approximately $23,665,000. Institutional investors own 95.30% of the company’s stock.

Analyst Ratings Changes

A number of research firms have issued reports on NXST. Wells Fargo & Company decreased their price target on shares of Nexstar Media Group from $253.00 to $249.00 and set an “overweight” rating for the company in a report on Friday. Citigroup upgraded Nexstar Media Group from a “neutral” rating to a “buy” rating and dropped their price objective for the stock from $252.00 to $220.00 in a research note on Friday, April 10th. Deutsche Bank Aktiengesellschaft decreased their target price on Nexstar Media Group from $270.00 to $255.00 and set a “buy” rating for the company in a research note on Monday, May 11th. Wall Street Zen lowered Nexstar Media Group from a “buy” rating to a “hold” rating in a report on Sunday, July 12th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Nexstar Media Group in a research report on Wednesday, May 27th. Six research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Nexstar Media Group presently has a consensus rating of “Moderate Buy” and an average target price of $259.00.

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.