Gray Television Projects Higher Political Ad Revenues Amid Election Year - Read Why
Portfolio Pulse from Nabaparna Bhattacharya
Gray Television, Inc. (NYSE:GTN) reported Q1 earnings per share of 79 cents, surpassing analyst expectations of 18 cents, but missed revenue estimates by a slight margin with $823 million against an expected $824.985 million. The company saw a 4% increase in core advertising revenue compared to 2023, attributing growth to strong advertiser demand for local content and significant earnings from the Super Bowl broadcast. Adjusted EBITDA rose by 21% from the previous year. GTN also announced a plan to repurchase up to $250 million of its outstanding indebtedness by the end of 2025. Despite a lower than expected revenue outlook for Q2, the company anticipates political advertising revenue to significantly increase, projecting a 55% to 72% rise compared to Q2 of 2020. Shares rose by 4.95% to $6.99 following the announcement.
May 07, 2024 | 3:04 pm
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POSITIVE IMPACT
Gray Television reported higher than expected Q1 earnings, slight miss on revenue forecasts, and strong growth in core advertising revenue. Announced debt repurchase plan and anticipates significant increase in political ad revenue in Q2.
GTN's better-than-expected earnings per share and the announcement of a debt repurchase plan signal strong financial health and management confidence, likely leading to positive investor sentiment. The anticipated increase in political advertising revenue, especially in an election year, further supports a positive outlook for the stock in the short term. However, the slight miss on revenue forecasts and a lower than expected Q2 revenue outlook may temper some of the enthusiasm.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100