Nexstar's Stock Dips: Q2 Earnings Fall Short Amid Mixed Advertising Market

Nexstar Media Group Inc NXST shares are trading lower after the company reported a second-quarter FY24 net revenue increase of 2.3% Y/Y to $1.269 billion, missing the consensus of $1.297 billion.

Revenues from Advertising rose 2.2% Y/Y to $522 million. The increase was driven by a $37 million rise in election-related political ads, offsetting a $24 million drop in non-political ad revenue due to a weak advertising market.

Distribution revenue gained 5.5% Y/Y to $734 million. This growth was driven by favorable distribution contract renewals, rate escalators, increased vMVPD subscribers, new CW affiliations, and the return of partner stations on one MVPD.

Adjusted EBITDA jumped 18.8% Y/Y to $398 million, and the margin expanded to 31.4% from 27.0% a year ago.

EPS was $3.54, up from $2.64 in the prior year quarter and below the consensus of $4.01.

Adjusted free cash flow totaled $78 million, up from $74 million in the prior year quarter.

As of June 30, 2024, unrestricted cash stood at $146 million. The company’s quarterly return of capital to shareholders was $190 million.

Perry A. Sook, Nexstar’s Chairman and Chief Executive Officer, said, “During the quarter, we continued executing on our plan at The CW, reducing operating losses by $33 million year-over-year and $83 million year-to-date as our organizational and programming changes are driving improved cash flows and the third consecutive quarter of ratings growth in primetime entertainment programming.”

“Looking ahead, we expect to benefit from anticipated record levels of political spending on broadcast television in the second half of the year.”

Investors can gain exposure to the stock via WBI BullBear Value 3000 ETF WBIF and WBI BullBear Quality 3000 ETF WBIL.

Price Action: NXST shares are down 3.30% at $166.22 at the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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