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Spotting Winners: Sinclair (NASDAQ:SBGI) And Broadcasting Stocks In Q1


Adam Hejl /
2024/05/31 5:07 am EDT

Let's dig into the relative performance of Sinclair (NASDAQ:SBGI) and its peers as we unravel the now-completed Q1 broadcasting earnings season.

Broadcasting companies have been facing secular headwinds in the form of consumers abandoning traditional television and radio in favor of streaming services. As a result, many broadcasting companies have evolved by forming distribution agreements with major streaming platforms so they can get in on part of the action, but will these subscription revenues be as high quality and high margin as their legacy revenues? Only time will tell which of these broadcasters will survive the sea changes of technological advancement and fragmenting consumer attention.

The 9 broadcasting stocks we track reported an ok Q1; on average, revenues missed analyst consensus estimates by 0.6%. while next quarter's revenue guidance was in line with consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and broadcasting stocks have had a rough stretch, with share prices down 9.1% on average since the previous earnings results.

Sinclair (NASDAQ:SBGI)

Founded in 1971, Sinclair (NASDAQ:SBGI) is an American media company operating numerous television stations and providing multi-platform broadcasting services.

Sinclair reported revenues of $798 million, up 3.2% year on year, falling short of analysts' expectations by 0.5%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' operating margin estimates.

Sinclair Total Revenue

The stock is down 5.8% since the results and currently trades at $12.49.

Read our full report on Sinclair here, it's free.

Best Q1: Nexstar Media (NASDAQ:NXST)

Founded in 1996, Nexstar (NASDAQ:NXST) is an American media company operating numerous local television stations and digital media outlets across the country.

Nexstar Media reported revenues of $1.28 billion, up 2.1% year on year, falling short of analysts' expectations by 0.4%. It was a strong quarter for the company, with an impressive beat of analysts' earnings estimates and a decent beat of analysts' operating margin estimates.

Nexstar Media Total Revenue

The stock is down 5.2% since the results and currently trades at $159.06.

Is now the time to buy Nexstar Media? Access our full analysis of the earnings results here, it's free.

Slowest Q1: AMC Networks (NASDAQ:AMCX)

Originally the joint-venture of four cable television companies, AMC Networks (NASDAQ:AMCX) is a broadcaster producing a diverse range of television shows and movies.

AMC Networks reported revenues of $596.5 million, down 16.9% year on year, falling short of analysts' expectations by 0.8%. It was a weak quarter for the company, with a miss of analysts' revenue and earnings estimates.

AMC Networks had the slowest revenue growth in the group. The stock is up 10.9% since the results and currently trades at $15.24.

Read our full analysis of AMC Networks's results here.

Gray Television (NYSE:GTN)

Specializing in local media coverage, Gray Television (NYSE:GTN) is a broadcast company supplying digital media to various markets in the United States.

Gray Television reported revenues of $823 million, up 2.7% year on year, falling short of analysts' expectations by 0.2%. It was an ok quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' operating margin estimates.

The stock is down 10.7% since the results and currently trades at $5.95.

Read our full, actionable report on Gray Television here, it's free.

TEGNA (NYSE:TGNA)

Spun out of Gannett in 2015, TEGNA (NYSE:TGNA) is a media company operating a network of television stations and digital platforms, focusing on local news and community content.

TEGNA reported revenues of $714.3 million, down 3.5% year on year, falling short of analysts' expectations by 0.6%. It was an mixed quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' revenue estimates.

The stock is down 2.2% since the results and currently trades at $14.34.

Read our full, actionable report on TEGNA here, it's free.

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