NASDAQ$NXST

Nexstar Media Group Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Nexstar reported record third quarter results driven by strong revenue growth and effective cost management

Nexstar Media Group reported record third quarter net revenue of $1,118.2 million, a 68.5% increase year-over-year. The company also achieved record operating income, net income, BCF, adjusted EBITDA, and free cash flow. The company allocated capital towards debt reduction and share repurchases, demonstrating its commitment to shareholder value.

  • Net revenue increased by 68.5% year-over-year to $1,118.2 million.
  • Adjusted EBITDA increased by 209.1% year-over-year to $443.6 million.
  • Free cash flow increased by 268.3% year-over-year to $219.0 million.
  • The company lowered net debt by $162.5 million and repurchased $125 million of Class A common shares.

Headline financials

Total Revenue

$1.12B

Previous: $664M+68.5%
EPS (adj)

$4.08

Previous: -$0.10+4180.0%
Adjusted EBITDA

$444M

Previous: $144M+209.1%
Political Advertising Revenue

$132M

Previous: $10.9M+1114.7%
Capital Expenditures

-$170M

Previous: -$110M-54.4%
Free Cash Flow

$20.5M

Previous: -$116M+117.7%
Net Income

$191M

Previous: -$5.85M+3361.2%
Operating Income

$344M

Previous: $122M+182.5%
Gross Profit

-$423M

Previous: -$322M-31.3%
Cash & Equivalents

$410M

Previous: $317M+29.1%
Total Assets

$13.3B

Previous: $14.1B-5.8%
Stock-Based Comp

$12.5M

Previous: $11.3M+10.8%

Revenue & EPS history

Nexstar · Revenue · Quarterly

$1.12B

Q3 2020+68.5%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Nexstar · $538M total across 1 segment · Q3 2020

  • Distribution
    $538M+82.6%

Forward guidance

Nexstar expects record results in the fourth quarter, reflecting the final weeks of political spending leading up to Election Day. The company is encouraged by the advertising rebound, particularly in the auto category, and the launch of News Nation.

Tailwinds

  • Month-over-month improvements in pacing data.
  • Expected record results reflecting the final five weeks of political spending.
  • Advertising rebound across the station footprint, notably in auto.
  • Resurgence in large box retail spending, fast food, home improvement, attorney and sports wagering ad spending.
  • Successful launch of WGN America’s primetime national newscast, News Nation.

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 Q3 2020

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro