Gray Media (NYSE:GTN) Releases Earnings Results, Beats Estimates By $0.29 EPS

Key Points

• Gray Media beat quarterly estimates: The company reported $0.21 in EPS versus the consensus estimate of a $0.08 loss, while revenue rose 8.7% year over year to $839 million and adjusted EBITDA reached $214 million.
• Political advertising drove the outlook: Second-quarter political revenue reached $83 million, above guidance, and management expects $165 million–$185 million in Q3 political revenue. Incremental political cash flow is expected to support debt reduction.
• Debt reduction continues amid weak core advertising: Gray redeemed $50 million of preferred equity and repurchased $120 million of debt, with up to $250 million in additional purchases authorized. Core advertising declined 1% as reported, reflecting underlying weakness and political crowd-out.

Gray Media (NYSE:GTN - Get Free Report) issued its quarterly earnings results on Friday. The company reported $0.21 EPS for the quarter, topping analysts' consensus estimates of ($0.08) by $0.29, FiscalAI reports. The company had revenue of $839.00 million for the quarter, compared to analysts' expectations of $795.13 million. Gray Media had a negative return on equity of 3.07% and a negative net margin of 3.12%.Gray Media's revenue was up 8.7% on a year-over-year basis. During the same quarter last year, the business earned ($0.71) earnings per share.

Here are the key takeaways from Gray Media's conference call:

• Second-quarter results exceeded guidance: Revenue rose 9% year over year to $839 million, while adjusted EBITDA reached $214 million. Political revenue was $83 million, above the company’s $60 million–$70 million outlook.
• Gray expects strong political advertising momentum, forecasting $165 million–$185 million of political revenue in Q3 amid significant exposure to competitive Senate, gubernatorial, and House races. Management plans to use substantially all incremental political cash flow to reduce debt.
• The company continued balance-sheet management by redeeming $50 million of preferred equity, repurchasing $120 million of debt, and authorizing up to $250 million more in debt purchases. Management said refinancing and repurchases could reduce annual interest expense by more than $30 million.
• Net retransmission revenue reached $150 million and is expected to accelerate into 2027 as newly acquired stations contribute and existing contracts remain in place. Management expects organic growth in the low single digits, plus additional acquisition-related revenue.
• Core advertising remained soft, declining 1% as reported and an estimated mid-single digits excluding acquisitions, with additional pressure from political crowd-out and an uncertain macroeconomic environment. Gray expects Q3 core advertising to be flat as reported only because acquisition growth offsets underlying weakness.

Gray Media Price Performance

Shares of GTN traded up $1.06 during trading hours on Friday, reaching $5.34. The stock had a trading volume of 4,321,859 shares, compared to its average volume of 1,110,169. Gray Media has a 12 month low of $3.50 and a 12 month high of $6.43. The stock has a market capitalization of $548.73 million, a PE ratio of -3.49 and a beta of 0.94. The company has a debt-to-equity ratio of 2.72, a quick ratio of 1.20 and a current ratio of 1.20. The company's 50-day moving average is $4.01 and its two-hundred day moving average is $4.52.

Gray Media Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be issued a dividend of $0.08 per share. The ex-dividend date is Tuesday, September 15th. This represents a $0.32 annualized dividend and a dividend yield of 6.0%. Gray Media's dividend payout ratio is -20.92%.

Analyst Ratings Changes

Several brokerages have commented on GTN. Weiss Ratings downgraded shares of Gray Media from a "sell (d+)" rating to a "sell (d)" rating in a research report on Friday, May 15th. Barrington Research reaffirmed an "outperform" rating and issued a $6.50 price objective on shares of Gray Media in a research note on Tuesday, April 28th. Guggenheim decreased their target price on Gray Media from $8.00 to $7.00 and set a "buy" rating on the stock in a research report on Friday, May 15th. Finally, Wall Street Zen raised shares of Gray Media from a "sell" rating to a "hold" rating in a report on Sunday, May 17th. Three research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $7.88.

Insider Buying and Selling at Gray Media

In related news, Director Richard Lee Boger sold 57,000 shares of the business's stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $4.40, for a total transaction of $250,800.00. Following the sale, the director owned 4,591 shares in the company, valued at $20,200.40. The trade was a 92.55% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 8.95% of the stock is currently owned by company insiders.

Institutional Trading of Gray Media

Hedge funds have recently made changes to their positions in the company. Acadian Asset Management LLC acquired a new position in shares of Gray Media in the first quarter valued at approximately $28,000. CANADA LIFE ASSURANCE Co boosted its position in Gray Media by 68.2% during the 4th quarter. CANADA LIFE ASSURANCE Co now owns 10,401 shares of the company's stock worth $50,000 after buying an additional 4,217 shares during the period. Engineers Gate Manager LP bought a new stake in Gray Media during the 4th quarter worth approximately $55,000. Dynamic Technology Lab Private Ltd bought a new stake in Gray Media during the 4th quarter worth approximately $63,000. Finally, Squarepoint Ops LLC acquired a new position in Gray Media in the 4th quarter valued at approximately $71,000. 78.64% of the stock is owned by institutional investors and hedge funds.

About Gray Media

Gray Media NYSE: GTN is a U.S.-based broadcasting and digital media company that owns and operates a portfolio of local television stations and associated digital platforms. The company's core business centers on delivering local news, sports and entertainment programming through its network-affiliated broadcast outlets. In addition to traditional over-the-air distribution, Gray Media supports multi-platform video streaming and on-demand services for audiences across its markets.

Gray Media's television stations carry network programming from major national broadcasters, including ABC, CBS, NBC, Fox and The CW, and often feature locally produced news and public affairs content.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source