Sinclair (NASDAQ:SBGI) Trading Down 9% on Disappointing Earnings

Key Points

• Sinclair's stock price fell by 9% after the company reported disappointing earnings, missing analysts' estimates with an earnings per share (EPS) of ($0.91) compared to the expected ($0.72).
• The company's revenue for the quarter was $784 million, which was below analyst predictions of $798.16 million and represented a 5.4% decline year-over-year.
• Sinclair announced a quarterly dividend of $0.25, yielding 7.8% annually, while its dividend payout ratio stands at 49.75%.

Shares of Sinclair, Inc. (NASDAQ:SBGI - Get Free Report) dropped 9% on Thursday following a dissappointing earnings announcement. The company traded as low as $12.67 and last traded at $12.86. Approximately 232,456 shares were traded during trading, a decline of 39% from the average daily volume of 383,394 shares. The stock had previously closed at $14.13.

The company reported ($0.91) earnings per share for the quarter, missing analysts' consensus estimates of ($0.72) by ($0.19). The business had revenue of $784.00 million during the quarter, compared to analyst estimates of $798.16 million. Sinclair had a net margin of 3.72% and a return on equity of 34.15%. The company's revenue for the quarter was down 5.4% compared to the same quarter last year. During the same period in the prior year, the business posted $0.27 EPS.

Sinclair Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Friday, August 29th will be issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 7.8%. Sinclair's dividend payout ratio is presently 49.75%.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. Guggenheim reaffirmed a "buy" rating on shares of Sinclair in a report on Thursday, May 15th. JPMorgan Chase & Co. reduced their target price on Sinclair from $14.00 to $13.00 and set an "underweight" rating on the stock in a report on Wednesday, May 21st. Benchmark cut their price objective on Sinclair from $29.00 to $27.00 and set a "buy" rating on the stock in a report on Thursday. Finally, Wall Street Zen downgraded Sinclair from a "hold" rating to a "sell" rating in a report on Monday, May 12th. Two research analysts have rated the stock with a sell rating, two have assigned a hold rating and two have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $18.10.

Institutional Investors Weigh In On Sinclair

Several hedge funds have recently modified their holdings of SBGI. Federated Hermes Inc. acquired a new position in Sinclair during the 4th quarter worth about $47,000. DekaBank Deutsche Girozentrale acquired a new position in shares of Sinclair in the 1st quarter valued at about $58,000. NBC Securities Inc. lifted its stake in shares of Sinclair by 105,075.0% in the 1st quarter. NBC Securities Inc. now owns 4,207 shares of the company's stock valued at $67,000 after purchasing an additional 4,203 shares during the period. Harbor Capital Advisors Inc. lifted its stake in shares of Sinclair by 71.5% in the 1st quarter. Harbor Capital Advisors Inc. now owns 4,937 shares of the company's stock valued at $79,000 after purchasing an additional 2,058 shares during the period. Finally, State of Wyoming acquired a new position in shares of Sinclair in the 1st quarter valued at about $119,000. Institutional investors and hedge funds own 41.71% of the company's stock.

Sinclair Price Performance

The business has a 50 day moving average price of $14.14 and a 200-day moving average price of $14.56. The company has a debt-to-equity ratio of 11.32, a quick ratio of 2.08 and a current ratio of 2.08. The company has a market capitalization of $890.84 million, a price-to-earnings ratio of 6.37 and a beta of 1.28.

About Sinclair

Sinclair, Inc, a media company, provides content on local television stations and digital platforms in the United States. It operates through two segments, Local Media and Tennis. The Local Media segment operates broadcast television stations, original networks, and content; provides free-over-the-air programming and live local sporting events on its stations; distributes its content to multi-channel video programming distributors in exchange for contractual fees; and produces local and original news programs.

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