NASDAQ$NXST

Nexstar Media Group Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Nexstar reported record Q2 2022 financial results, with significant growth in net revenue, operating income, net income, Adjusted EBITDA, and free cash flow.

Nexstar Media Group reported record second-quarter financial results, including all-time high net revenue, Adjusted EBITDA, and free cash flow. The company saw strong year-over-year growth in political advertising, distribution, and digital revenues. Nexstar is reiterating its pro forma average annual free cash flow guidance of $1.4 billion over the 2022/2023 cycle.

  • Record second quarter net revenue of $1.25 billion, up 10.0% year-over-year.
  • Adjusted EBITDA increased 16.1% to $486.3 million, representing a 39.1% margin.
  • Free cash flow increased 20.9% to $219.0 million, representing 45.0% of Adjusted EBITDA.
  • Returned $284.3 million to shareholders through share repurchases and dividends.

Headline financials

Total Revenue

$1.25B

Previous: $1.13B+10.0%
EPS (adj)

$5.56

Previous: $4.51+23.3%
Political Advertising Revenue

$86.7M

Previous: $8.51M+918.7%
Capital Expenditures

-$63M

Previous: -$66.9M+5.8%
Free Cash Flow

$165M

Previous: $133M+23.5%
Net Income

$228M

Previous: $200M+13.7%
Operating Income

$333M

Previous: $288M+15.6%
Gross Profit

-$502M

Previous: -$462M-8.5%
Cash & Equivalents

$276M

Previous: $313M-11.8%
Total Assets

$12.9B

Previous: $13.3B-2.8%
Stock-Based Comp

$13.2M

Previous: $10.4M+26.7%

Revenue & EPS history

Nexstar · Revenue · Quarterly

$1.25B

Q2 2022+10%vs Q2 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Nexstar · $646M total across 1 segment · Q2 2022

  • Distribution
    $646M+4.7%

Forward guidance

Nexstar is reiterating its pro forma average annual free cash flow guidance of $1.4 billion over the 2022/2023 cycle.

Tailwinds

  • Expected continuation of strong political advertising for the 2022 mid-term and 2024 presidential election cycles
  • Renewals of distribution agreements in 2022 and 2023 representing the substantial majority of our subscribers
  • Company does not currently see evidence that macroeconomic challenges are having a material impact on Nexstar’s business.
  • Board’s recent approval of a new $1.5 billion share repurchase authorization
  • Confidence in Nexstar’s free cash flow growth outlook

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 2022

Historical avgQ2 2022

+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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