NASDAQ$NXST

Nexstar Media Group Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Nexstar's Q2 2020 results reflected record net revenue, operating income, and net income, driven by growth in television advertising and distribution fee revenues.

Nexstar Media Group reported record second-quarter results, with net revenue, profitability, and cash flow metrics exceeding expectations. The company's diversified business model and expense management contributed to a 40.9% increase in net revenue and significant growth in broadcast cash flow, adjusted EBITDA, and free cash flow.

  • Net revenue increased by 40.9% year-over-year, reaching $914.6 million.
  • Operating income grew by 30.9% to $196.3 million.
  • Adjusted EBITDA increased by 48.6% year-over-year to $292.8 million.
  • Free cash flow increased by 127.3% year-over-year to $194.9 million.

Headline financials

Total Revenue

$915M

Previous: $649M+40.9%
EPS (adj)

$2.02

Previous: $1.42+42.3%
Adjusted EBITDA

$293M

Previous: $197M+48.6%
Political Advertising Revenue

$21.6M

Previous: $3.16M+583.1%
Capital Expenditures

-$116M

Previous: -$71.5M-61.8%
Free Cash Flow

-$16.1M

Previous: -$3.47M-363.4%
Net Income

$99.6M

Previous: $68M+46.5%
Operating Income

$196M

Previous: $150M+30.9%
Gross Profit

-$417M

Previous: -$296M-40.7%
Cash & Equivalents

$665M

Previous: $79.9M+731.6%
Total Assets

$13.5B

Previous: $7.03B+92.6%
Stock-Based Comp

$12.7M

Previous: $9.69M+31.6%

Revenue & EPS history

Nexstar · Revenue · Quarterly

$915M

Q2 2020+40.9%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Nexstar · $537M total across 1 segment · Q2 2020

  • Distribution
    $537M+70.7%

Forward guidance

Nexstar expects to be free cash flow positive in every quarter of 2020 and anticipates net leverage to decline to approximately 4x by year-end.

Tailwinds

  • Month over month improvement in pacing data
  • Benefit from significantly increased levels of political ad spending beginning in September
  • Nearly all markets have reopened in some form
  • Key economic indicators, including employment and consumer spending, are improving
  • Live news and sports programming continue to generate the strongest levels of viewership across all demographics

Headwinds

  • Pandemic continues to impact commercial advertising
  • Economic impact on the U.S. commercial advertising market
  • Unprecedented challenges that have impacted our families, the economy and our daily lives
  • Softer local customer buying trends related to the COVID-19 pandemic
  • Marketplace challenges

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 Q2 2020

Historical avgQ2 2020

+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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