NASDAQ$NXST

Nexstar Media Group Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Nexstar reported record Q4 net revenue and strong growth in adjusted EBITDA and free cash flow, driven by political advertising and the acquisition of The CW.

Nexstar Media Group reported record fourth-quarter net revenue of $1.49 billion, a 19.3% increase year-over-year. The company's adjusted EBITDA increased by 19.8% to $598.2 million, and attributable free cash flow increased by 27.8% to $422.1 million. Excluding The CW Network, adjusted EBITDA increased by 32.5% to $661.8 million, and free cash flow increased by 38.7% to $458.1 million.

  • Nexstar's Q4 net revenue increased by 19.3% year-over-year to $1.49 billion.
  • Q4 adjusted EBITDA increased by 19.8% to $598.2 million.
  • Q4 attributable free cash flow increased by 27.8% to $422.1 million.
  • Excluding The CW, Q4 adjusted EBITDA increased by 32.5% to $661.8 million and free cash flow increased by 38.7% to $458.1 million.

Headline financials

Total Revenue

$1.49B

Previous: $1.25B+19.3%
EPS (adj)

$5.30

Previous: $6.19-14.4%
Adjusted EBITDA

$598M

Previous: $496M+20.6%
Political Advertising Revenue

$266M

Previous: $18.9M+1307.4%
Capital Expenditures

$57.3M

Previous: $45.8M+25.2%
Free Cash Flow

$406M

Previous: $287M+41.3%
Net Income

$178M

Previous: $262M-32.1%
Operating Income

$294M

Previous: $325M-9.5%
Gross Profit

$985M

Previous: $781M+26.1%
Cash & Equivalents

$204M

Previous: $191M+6.9%
Total Assets

$12.7B

Previous: $13.3B-4.4%
Stock-Based Comp

$18.2M

Previous: $12.4M+47.0%

Revenue & EPS history

Nexstar · Revenue · Quarterly

$1.49B

Q4 2022+19.3%vs Q4 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Nexstar · $616M total across 1 segment · Q4 2022

  • Distribution
    $616M-0.0%

Forward guidance

For the 2023/2024 cycle, Nexstar expects to generate pro forma average annual attributable free cash flow of approximately $1.25 billion, inclusive of $90 million of attributable losses and associated tax benefit from The CW.

Tailwinds

  • 2023 will benefit from the 2022 renegotiation of our distribution contracts representing more than half of our subscribers
  • 2024 will benefit from presidential election year political advertising
  • 2024 will benefit from additional distribution contract renewals
  • Strong free cash flow enables us to increase the percentage of capital returned to shareholders in the form of dividends
  • Strong free cash flow enables us to continue to opportunistically repurchase shares, as well as reduce debt and pursue other strategic opportunities to further enhance shareholder value.

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 Q4 2022

Historical avgQ4 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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