Sinclair (NASDAQ:SBGI) Releases Earnings Results

Key Points

• Q1 beat and momentum: Sinclair reported EPS of $0.28 (vs. consensus -$1.04), revenue of $807M (up 4%) and adjusted EBITDA of $126M (up 13%), and the company reaffirmed its full‑year 2026 guidance.
• Balance‑sheet progress: Sinclair retired about $165M of term loans (saving ~$12M in annual interest), ended the quarter with roughly $1.5B of liquidity and improved STG net leverage to 5.1x.
• Near‑term risks despite audience gains: Tennis Channel delivered record viewership and D2C growth but saw adjusted EBITDA decline due to investment in rights and distribution, while state litigation and an FCC sports‑streaming inquiry introduce timing risk for Sinclair's planned M&A/ventures separation.

Sinclair (NASDAQ:SBGI - Get Free Report) posted its quarterly earnings results on Thursday. The company reported $0.28 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($1.04) by $1.32, Zacks reports. Sinclair had a negative return on equity of 64.27% and a negative net margin of 3.53%.Sinclair's revenue for the quarter was up 4.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($2.30) EPS.

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

• Q1 results — Sinclair reported revenue of $807 million (up 4%) and adjusted EBITDA of $126 million (up 13%) and is reaffirming its full‑year 2026 guidance.
• Core operations gaining momentum — core advertising grew 4% and distribution rose 2%, helped by the Digital Remedy acquisition, improving MVPD subscriber trends, and partner station buy‑ins, with management expecting the full $30 million of annualized buy‑in synergies in 2026.
• Balance‑sheet progress — the company retired about $165 million of term loans in April (saving ~$12 million in annual cash interest), ended the quarter with ~$1.5 billion liquidity and reported STG net leverage of 5.1x (improved 0.2x sequentially).
• Tennis Channel momentum vs. short‑term costs — Tennis Channel delivered record March viewership and a ~19% year‑over‑year increase in household reach with rising D2C subs, but adjusted EBITDA fell as Sinclair is investing in rights, D2C and FAST expansion.
• Regulatory and M&A uncertainty — state‑level litigation around Nexstar‑Tegna and an FCC inquiry into sports streaming have introduced near‑term timing risk for industry consolidation; Sinclair still favors a broadcast combination concurrent with a Ventures separation but says timing may be delayed.

Sinclair Stock Up 2.0%

Shares of Sinclair stock traded up $0.30 during trading hours on Thursday, reaching $15.55. The company's stock had a trading volume of 496,883 shares, compared to its average volume of 438,099. The company has a market capitalization of $1.11 billion, a P/E ratio of -9.26 and a beta of 1.03. The stock's fifty day simple moving average is $14.58 and its two-hundred day simple moving average is $14.80. Sinclair has a one year low of $11.89 and a one year high of $17.88. The company has a debt-to-equity ratio of 11.78, a quick ratio of 2.42 and a current ratio of 2.42.

Sinclair Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, March 24th. Shareholders of record on Tuesday, March 10th were issued a dividend of $0.25 per share. The ex-dividend date was Tuesday, March 10th. This represents a $1.00 annualized dividend and a yield of 6.4%. Sinclair's dividend payout ratio is presently -59.52%.

Insider Activity

In other Sinclair news, Director Daniel C. Keith sold 22,613 shares of the business's stock in a transaction that occurred on Thursday, April 2nd. The stock was sold at an average price of $13.10, for a total transaction of $296,230.30. Following the completion of the sale, the director directly owned 25,027 shares of the company's stock, valued at approximately $327,853.70. The trade was a 47.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Robert Weisbord sold 3,672 shares of the stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $13.97, for a total value of $51,297.84. Following the completion of the sale, the chief operating officer directly owned 280,853 shares of the company's stock, valued at approximately $3,923,516.41. This trade represents a 1.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 55,672 shares of company stock valued at $758,498. 46.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Sinclair

A number of institutional investors and hedge funds have recently bought and sold shares of SBGI. Geneos Wealth Management Inc. boosted its holdings in Sinclair by 142.0% during the 2nd quarter. Geneos Wealth Management Inc. now owns 1,815 shares of the company's stock worth $25,000 after acquiring an additional 1,065 shares during the last quarter. Tower Research Capital LLC TRC lifted its position in shares of Sinclair by 175.6% during the second quarter. Tower Research Capital LLC TRC now owns 2,954 shares of the company's stock valued at $41,000 after purchasing an additional 1,882 shares in the last quarter. Aquatic Capital Management LLC purchased a new position in Sinclair during the third quarter worth about $48,000. Raymond James Financial Inc. bought a new stake in Sinclair in the 2nd quarter worth about $54,000. Finally, Headlands Technologies LLC grew its position in Sinclair by 79.3% in the 2nd quarter. Headlands Technologies LLC now owns 6,773 shares of the company's stock worth $94,000 after purchasing an additional 2,996 shares in the last quarter. 41.71% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the stock. Wells Fargo & Company boosted their target price on shares of Sinclair from $16.00 to $17.00 and gave the company an "equal weight" rating in a research report on Thursday, February 26th. JPMorgan Chase & Co. reduced their price target on shares of Sinclair from $15.00 to $14.00 and set an "underweight" rating for the company in a report on Wednesday, April 1st. Wall Street Zen upgraded shares of Sinclair from a "sell" rating to a "hold" rating in a report on Sunday, February 22nd. Benchmark increased their price objective on shares of Sinclair from $27.00 to $30.00 and gave the stock a "buy" rating in a research report on Thursday, February 26th. Finally, Deutsche Bank Aktiengesellschaft set a $17.00 target price on Sinclair in a research note on Wednesday, April 15th. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $19.60.

About Sinclair

Sinclair Broadcast Group, Inc NASDAQ: SBGI is a media and entertainment company headquartered in Hunt Valley, Maryland. Founded in 1971 as a single UHF television station operator, Sinclair has grown through strategic acquisitions and organic expansion to become one of the largest owners of local television stations in the United States. Over its history, the company has pursued a diversified portfolio that includes both traditional broadcast assets and newer digital platforms.

At its core, Sinclair operates over 190 television stations affiliated with the major national broadcast networks, including ABC, CBS, NBC, Fox, The CW and MyNetworkTV.