NASDAQ$NXST

Nexstar Media Group Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Nexstar reported record first-quarter net revenue, driven by distribution revenue and the acquisition of The CW, which offset declines in political and Olympic advertising.

Nexstar Media Group reported record first-quarter net revenue of $1.26 billion, a 3.9% increase year-over-year. The growth was driven by distribution revenue and the acquisition of The CW. The company returned $225 million to shareholders through dividends and share repurchases.

  • Record first quarter net revenue of $1.26 billion, up 3.9% year-over-year.
  • Adjusted EBITDA was $491 million with a 39.1% margin.
  • Attributable free cash flow was $383 million.
  • Returned $225 million to shareholders through share repurchases and dividends.

Headline financials

Total Revenue

$1.26B

Previous: $1.21B+3.9%
EPS (adj)

$2.97

Previous: $5.99-50.4%
Adjusted EBITDA

$491M

Previous: $643M-23.6%
Political Advertising Revenue

$8M

Previous: $23.7M-66.2%
Capital Expenditures

-$36M

Previous: -$28.9M-24.6%
Free Cash Flow

$75M

Previous: $223M-66.3%
Net Income

$111M

Previous: $252M-55.9%
Operating Income

$204M

Previous: $329M-38.1%
Gross Profit

-$538M

Previous: -$490M-9.8%
Cash & Equivalents

$413M

Previous: $326M+26.6%
Total Assets

$12.5B

Previous: $13.1B-4.8%
Stock-Based Comp

$14M

Previous: $13M+7.7%

Revenue & EPS history

Nexstar · Revenue · Quarterly

$1.26B

Q1 2023+3.9%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Nexstar · $728M total across 1 segment · Q1 2023

  • Distribution
    $728M+9.0%

Forward guidance

Nexstar expects 2023 to benefit from recently renegotiated distribution contracts and anticipates strong upside in 2024 from presidential election year political advertising and additional distribution contract renewals.

Tailwinds

  • Benefit from recently renegotiated distribution contracts
  • Strong upside from presidential election year political advertising in 2024
  • Additional distribution contract renewals expected later this year
  • Leveraging linear, digital, mobile and streaming assets
  • Nationwide reach with local activation

Headwinds

  • Cyclical year-over-year decline in political and Olympic advertising
  • Softness in the advertising market primarily due to national advertising
  • Losses related to The CW
  • Increased news expenses related to the expansion of news programming at NewsNation
  • Reduction in the TV Food Network distribution

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.9%

Avg return

Earnings day

+3.2%

Avg return

5 days after

+3.6%

Avg return

30 days after

59%

38 / 64 earnings

Positive

+11.5%

Q1 2020

Best reaction

-10.3%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.5%-0.0%-7.8%
Q4 2025+5.5%+4.7%-8.3%
Q3 2025-3.4%-0.7%-3.7%
Q1 2025+5.4%+11.9%+8.4%
Q4 2024+11.1%+16.0%+20.6%
Q3 2024-9.4%-8.2%-7.1%
Q2 2024-7.9%-8.5%-6.1%
Q1 2024+2.5%+6.9%-6.9%
Q4 2023+2.3%-3.9%+6.1%
Q3 2023-4.8%-5.1%-1.9%
Q2 2023-10.3%-10.5%-27.4%
Q1 2023-3.6%-3.7%+1.4%
Q4 2022-3.2%-4.9%-11.5%
Q3 2022+2.5%+8.5%+17.4%
Q2 2022+1.9%+3.1%+0.5%
Q1 2022+6.2%+12.9%+12.6%
Q4 2021-3.2%+1.9%+8.2%
Q3 2021+6.1%+8.6%+0.1%
Q2 2021+3.3%+1.6%+0.6%
Q1 2021+0.6%-0.6%+0.2%
Q4 2020+8.1%+7.0%+13.6%
Q3 2020+5.6%+15.8%+35.3%
Q2 2020-0.3%-0.3%+6.8%
Q1 2020+11.5%+18.8%+53.1%
Q4 2019-1.8%+1.3%-45.1%
Q3 2019+5.0%+11.6%+12.3%
Q2 2019-0.3%-0.1%+2.5%
Q1 2019+0.3%-3.4%-10.5%
Q4 2018+5.1%+11.8%+21.6%
Q3 2018-2.6%-3.3%+2.5%
Q2 2018+1.0%+0.6%+4.3%
Q1 2018+1.9%+6.6%+13.2%
Q4 2017-3.1%-1.5%-9.8%
Q3 2017+3.5%+4.1%+12.9%
Q2 2017+3.0%+2.9%-5.1%
Q1 2017+0.5%-3.4%-2.0%
Q4 2016+4.2%+3.0%+0.2%
Q3 2016+4.9%+20.7%+34.5%
Q2 2016-3.1%+1.4%+3.2%
Q1 2016-1.2%
Q4 2015+7.1%
Q3 2015+1.0%
Q2 2015+0.2%
Q1 2015-2.1%
Q4 2014+0.5%
Q3 2014+4.8%
Q2 2014+3.5%
Q1 2014-4.0%
Q4 2013-3.9%
Q3 2013-1.3%
Q2 2013-5.1%
Q1 2013+6.7%
Q4 2012+4.9%
Q3 2012+1.9%
Q2 2012+2.5%
Q1 2011+1.0%
Q1 2012+0.9%
Q4 2011-0.5%
Q2 2011-0.5%
Q3 2011-1.5%
Q4 2010+7.8%
Q3 2010-6.9%
Q2 2010+2.2%
Q1 2010-2.0%

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