Local television broadcasting and media company Gray Television (NYSE:GTN) will be reporting results tomorrow before market hours. Here’s what to look for.
Gray Television missed analysts’ revenue expectations by 2% last quarter, reporting revenues of $950 million, up 18.3% year on year. It was a softer quarter for the company, with revenue guidance for next quarter missing analysts’ expectations and a miss of analysts’ EPS estimates.
Is Gray Television a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Gray Television’s revenue to grow 20.2% year on year to $1.04 billion, a reversal from the 19.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.27 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Gray Television has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Gray Television’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. FOX delivered year-on-year revenue growth of 19.9%, beating analysts’ expectations by 5%, and AMC Networks reported a revenue decline of 11.7%, falling short of estimates by 2.3%. FOX traded up 5% following the results while AMC Networks was down 15.4%.
Read our full analysis of FOX’s results here and AMC Networks’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the consumer discretionary stocks have shown solid performance, the group has generally underperformed, with share prices down 3.3% on average over the last month. Gray Television is up 13.4% during the same time and is heading into earnings with an average analyst price target of $5.80 (compared to the current share price of $4.06).
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