Sinclair (NASDAQ:SBGI) Shares 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%.

Sinclair, Inc. (NASDAQ:SBGI - Get Free Report)'s share price was down 9% during trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $12.67 and last traded at $12.86. Approximately 232,456 shares traded hands 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 (EPS) for the quarter, missing the consensus estimate of ($0.72) by ($0.19). Sinclair had a return on equity of 11.61% and a net margin of 1.44%. The firm had revenue of $784.00 million during the quarter, compared to analysts' expectations of $798.16 million. During the same period last year, the firm posted $0.27 earnings per share. The firm's quarterly revenue was down 5.4% on a year-over-year basis.

Sinclair Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Friday, August 29th will be paid a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 8.0%. The ex-dividend date is Friday, August 29th. Sinclair's payout ratio is currently 120.48%.

Wall Street Analyst Weigh In

SBGI has been the topic of several analyst reports. Guggenheim reaffirmed a "buy" rating on shares of Sinclair in a report on Thursday, May 15th. JPMorgan Chase & Co. decreased their price target on Sinclair from $14.00 to $13.00 and set an "underweight" rating for the company in a report on Wednesday, May 21st. Wells Fargo & Company dropped their target price on Sinclair from $17.00 to $16.00 and set an "equal weight" rating on the stock in a research report on Thursday. Benchmark decreased their price target on Sinclair from $29.00 to $27.00 and set a "buy" rating for the company in a research report on Thursday. Finally, Wall Street Zen downgraded Sinclair from a "hold" rating to a "sell" rating in a research note on Monday, May 12th. Two analysts have rated the stock with a sell rating, two have issued a hold rating and two have given a buy rating to the stock. According to data from MarketBeat, Sinclair has an average rating of "Hold" and an average price target of $17.90.

Institutional Trading of Sinclair

Hedge funds and other institutional investors have recently made changes to their positions in the business. Carronade Capital Management LP grew its holdings in Sinclair by 418.1% during the 4th quarter. Carronade Capital Management LP now owns 440,419 shares of the company's stock worth $7,108,000 after acquiring an additional 355,419 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in Sinclair by 65.0% in the first quarter. Charles Schwab Investment Management Inc. now owns 717,007 shares of the company's stock valued at $11,422,000 after acquiring an additional 282,400 shares during the last quarter. Geode Capital Management LLC raised its position in shares of Sinclair by 15.3% during the second quarter. Geode Capital Management LLC now owns 971,689 shares of the company's stock worth $13,431,000 after purchasing an additional 129,277 shares during the period. Kennondale Capital Management LLC bought a new position in Sinclair in the 1st quarter valued at $1,718,000. Finally, Algert Global LLC bought a new stake in shares of Sinclair during the 1st quarter valued at about $1,608,000. 41.71% of the stock is currently owned by institutional investors.

Sinclair Stock Up 4.4%

The company has a current ratio of 2.08, a quick ratio of 2.08 and a debt-to-equity ratio of 11.32. The stock has a 50 day simple moving average of $14.05 and a 200 day simple moving average of $14.52. The firm has a market capitalization of $866.87 million, a PE ratio of 15.00 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.