NASDAQ$NXST

Nexstar Media Group Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Nexstar outperformed consensus expectations in Q2 2023, driven by strong performance across key financial metrics.

Nexstar Media Group reported second quarter net revenue of $1.24 billion, which was essentially flat compared to the prior year quarter. The company's strong performance was attributed to the benefits of scale in company-wide relationships and decentralized local and business-unit management. Adjusted EBITDA was $331 million and attributable free cash flow was $100 million.

  • Nexstar outperformed consensus expectations in the second quarter across all key financial metrics.
  • The CW entered into sports programming agreements to carry ACC football and basketball beginning in September 2023 and the NASCAR Xfinity Series beginning in 2025.
  • NewsNation became a 24/5 news network with the debut of new expanded daytime programming.
  • Nexstar shareholders voted to declassify the Company’s Board of Directors.

Headline financials

Total Revenue

$1.24B

Previous: $1.25B-0.4%
EPS (adj)

$2.64

Previous: $5.56-52.5%
Adjusted EBITDA

$331M

No prior period
Political Advertising Revenue

$9M

Previous: $86.7M-89.6%
Capital Expenditures

-$77M

Previous: -$63M-22.2%
Free Cash Flow

$19M

Previous: $165M-88.4%
Net Income

$96M

Previous: $228M-57.8%
Operating Income

$179M

Previous: $333M-46.3%
Gross Profit

-$537M

Previous: -$502M-7.1%
Cash & Equivalents

$346M

Previous: $276M+25.2%
Total Assets

$12.3B

Previous: $12.9B-4.7%
Stock-Based Comp

$13M

Previous: $13.2M-1.5%

Revenue & EPS history

Nexstar · Revenue · Quarterly

$1.24B

Q2 2023-0.4%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Nexstar · $696M total across 1 segment · Q2 2023

  • Distribution
    $696M+7.7%

Forward guidance

Looking forward, Nexstar expects the balance of 2023 will continue to reflect their ability to outperform the overall advertising market and benefit from renegotiated distribution contracts. They are even more excited about 2024 as Nexstar will realize upside from presidential election year political advertising, additional distribution contract renewals this year, a slowing of losses related to The CW Network, as well as expectations for a declining interest rate environment and a recovering economy.

Tailwinds

  • Ability to outperform the overall advertising market.
  • Benefit from renegotiated distribution contracts.
  • Upside from presidential election year political advertising in 2024.
  • Additional distribution contract renewals in 2023.
  • Slowing of losses related to The CW Network.

Headwinds

  • Ongoing impact of negotiations with certain distribution partners.
  • Continued softness in the advertising market.
  • Increased news expenses related to the expansion of news programming at NewsNation and Nexstar’s local news operations.
  • Reduction in the TV Food Network distribution primarily related to lower advertising revenue.
  • Losses related to The CW Network

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 2023

Historical avgQ2 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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