Sinclair (NASDAQ:SBGI) Issues Earnings Results, Beats Expectations By $0.33 EPS

Key Points

• Sinclair reported quarterly EPS of $0.60, beating the $0.27 consensus by $0.33, while revenue of $893 million also topped estimates of $874.2 million.
• The company expects record 2026 political revenue of about $455 million and raised full-year Adjusted EBITDA guidance by $85 million at the midpoint.
• Core advertising revenue fell 4% amid political crowd-out and cautious advertisers, while Sinclair reduced debt by approximately $355 million year to date.

Sinclair (NASDAQ:SBGI - Get Free Report) issued its earnings results on Wednesday. The company reported $0.60 earnings per share for the quarter, topping the consensus estimate of $0.27 by $0.33, FiscalAI reports. Sinclair had a negative return on equity of 16.09% and a net margin of 1.60%. The company had revenue of $893.00 million during the quarter, compared to the consensus estimate of $874.21 million.

Here are the key takeaways from Sinclair's conference call:

• Sinclair expects record 2026 political revenue of approximately $455 million, up 37% from the 2022 midterm cycle and well above its prior outlook. Third-quarter revenue rose 16% to $893 million and Adjusted EBITDA more than doubled; the company raised full-year Adjusted EBITDA guidance by $85 million at the midpoint.
• Distribution revenue increased 1% as subscriber churn moderated, and Sinclair reduced debt by about $355 million year to date. STG net leverage fell to 5.1x from 6.0x a year earlier, with management prioritizing further debt reduction.
• Core advertising revenue declined 4% in the quarter amid political crowd-out and cautious, cost-pressured advertisers. Management also flagged 2027 headwinds, including no Olympics or World Cup and uncertainty around the MLB season.
• Tennis Channel’s core revenue grew 21%, supported by audience gains and D2C subscriber growth, while the company plans new apps and continued streaming investment. Tennis Adjusted EBITDA fell about $1 million as programming, production, and platform investment costs increased.
• Sinclair will not separate Ventures on a standalone basis, citing the value of strategic flexibility, but says a larger broadcast transaction that could include a spin-merge remains under consideration. Management also expects further station-optimization deals, while noting larger broadcast M&A may depend on resolution of the Nexstar–TEGNA situation.

Sinclair Price Performance

NASDAQ:SBGI traded up $0.63 during mid-day trading on Wednesday, reaching $14.10. 921,242 shares of the stock were exchanged, compared to its average volume of 480,406. The business has a fifty day moving average price of $13.17 and a 200 day moving average price of $14.06. The firm has a market capitalization of $1.02 billion, a PE ratio of 18.80 and a beta of 1.24. Sinclair has a 1-year low of $11.83 and a 1-year high of $17.88. The company has a current ratio of 1.94, a quick ratio of 1.94 and a debt-to-equity ratio of 13.28.

Analysts Set New Price Targets

SBGI has been the subject of several recent research reports. Wall Street Zen downgraded shares of Sinclair from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. JPMorgan Chase & Co. lifted their target price on Sinclair from $14.00 to $15.00 and gave the stock an "underweight" rating in a research report on Friday, August 21st. Zacks Research raised Sinclair from a "strong sell" rating to a "hold" rating in a report on Tuesday, September 8th. Finally, Weiss Ratings cut shares of Sinclair from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday, October 8th. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $19.40.

Insiders Place Their Bets

In other Sinclair news, EVP David Gibber sold 29,246 shares of the company's stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $13.74, for a total value of $401,840.04. Following the completion of the sale, the executive vice president directly owned 184,244 shares of the company's stock, valued at approximately $2,531,512.56. This represents a 13.70% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 42.10% of the company's stock.

Sinclair Company Profile

Sinclair, Inc is a diversified media company that owns and operates local television stations across the United States. Its broadcast portfolio includes ABC, CBS, FOX, NBC, and other network-affiliated stations, as well as independent stations. Sinclair's local media operations produce news, weather, sports, and community-focused programming for viewers in markets throughout the country.

The company also develops and distributes national and regional content through cable networks, digital platforms, and streaming services.

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