Local broadcasting and digital media company Nexstar (NASDAQ:NXST) will be reporting earnings tomorrow morning. Here’s what to expect.
Nexstar Media met analysts’ revenue expectations last quarter, reporting revenues of $1.37 billion, up 20.7% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a slight miss of analysts’ adjusted operating income estimates.
Is Nexstar Media a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Nexstar Media’s revenue to grow 13.5% year on year to $1.48 billion, a reversal from the 12.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $8.02 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. Nexstar Media has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Nexstar Media’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.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for 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. Nexstar Media is down 4.9% during the same time and is heading into earnings with an average analyst price target of $192.92 (compared to the current share price of $149.60).
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