Sinclair (NASDAQ:SBGI) Posts Quarterly Earnings Results, Misses Expectations By $0.82 EPS

Sinclair (NASDAQ:SBGI) announced its quarterly earnings data on Wednesday. The company reported ($1.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.24) by ($0.82), FiscalAI reports. Sinclair had a net margin of 1.60% and a negative return on equity of 15.61%. The company had revenue of $840.00 million for the quarter, compared to analysts’ expectations of $838.99 million. During the same quarter in the previous year, the firm posted ($0.91) EPS. The firm’s quarterly revenue was up 7.1% compared to the same quarter last year.

Here are the key takeaways from Sinclair’s conference call:

• Political advertising revenue rose 9% year over year to $59 million, and Sinclair raised its full-year political guidance to at least $375 million, citing strong early demand across competitive Senate, gubernatorial and House races.
• Sinclair increased full-year Adjusted EBITDA guidance to $730 million-$760 million despite lower core advertising expectations, supported by high-margin political revenue, year-to-date outperformance and continued expense discipline.
• The company reduced debt by approximately $320 million during the quarter and an additional $25 million after quarter-end, lowering interest expense and leaving its nearest material maturity in December 2029.
• Core advertising revenue declined 3% as political spending crowded out inventory and fuel, tariff and cost-inflation concerns pressured advertisers; Sinclair cut its full-year core advertising outlook by $40 million at the midpoint.
• Management expects the anticipated removal of the FCC’s 39% national ownership cap to make large-scale broadcast M&A less risky, while record World Cup audiences and cross-platform sports offerings supported advertiser demand.

Sinclair Stock Performance

Shares of SBGI stock traded down $0.53 during mid-day trading on Friday, reaching $14.23. 923,535 shares of the company’s stock traded hands, compared to its average volume of 475,184. The company has a debt-to-equity ratio of 11.10, a quick ratio of 2.42 and a current ratio of 2.42. The firm has a market capitalization of $1.03 billion, a PE ratio of 18.91 and a beta of 1.06. Sinclair has a 12 month low of $11.89 and a 12 month high of $17.88. The firm has a 50 day moving average price of $14.05 and a two-hundred day moving average price of $14.35.

Sinclair Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Monday, August 31st will be given a dividend of $0.25 per share. The ex-dividend date of this dividend is Monday, August 31st. This represents a $1.00 dividend on an annualized basis and a dividend yield of 7.0%. Sinclair’s payout ratio is presently 133.33%.

Analyst Upgrades and Downgrades

SBGI has been the topic of several analyst reports. Guggenheim dropped their target price on shares of Sinclair from $20.00 to $19.00 and set a “buy” rating on the stock in a research note on Tuesday, May 5th. Wall Street Zen raised Sinclair from a “hold” rating to a “buy” rating in a report on Saturday, May 9th. Deutsche Bank Aktiengesellschaft set a $17.00 price target on Sinclair in a research note on Wednesday, April 15th. Weiss Ratings upgraded Sinclair from a “sell (d+)” rating to a “hold (c-)” rating in a report on Tuesday, June 30th. Finally, Wells Fargo & Company decreased their target price on Sinclair from $17.00 to $16.00 and set an “equal weight” rating for the company in a research report on Friday, May 1st. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $19.20.

Insiders Place Their Bets

In other Sinclair news, Director Daniel C. Keith sold 17,000 shares of the business’s stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $15.02, for a total transaction of $255,340.00. Following the completion of the sale, the director owned 25,122 shares of the company’s stock, valued at approximately $377,332.44. The trade was a 40.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 42.10% of the company’s stock.

Hedge Funds Weigh In On Sinclair

Several large investors have recently added to or reduced their stakes in SBGI. AQR Capital Management LLC increased its stake in shares of Sinclair by 5.7% in the first quarter. AQR Capital Management LLC now owns 41,993 shares of the company’s stock worth $656,000 after purchasing an additional 2,258 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Sinclair by 4.3% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 19,082 shares of the company’s stock worth $304,000 after buying an additional 780 shares during the period. Acadian Asset Management LLC increased its stake in Sinclair by 134.7% in the 1st quarter. Acadian Asset Management LLC now owns 11,525 shares of the company’s stock worth $182,000 after buying an additional 6,615 shares in the last quarter. Cetera Investment Advisers increased its stake in Sinclair by 17.7% in the 2nd quarter. Cetera Investment Advisers now owns 17,097 shares of the company’s stock worth $236,000 after buying an additional 2,572 shares in the last quarter. Finally, JPMorgan Chase & Co. raised its holdings in Sinclair by 5.1% during the second quarter. JPMorgan Chase & Co. now owns 31,075 shares of the company’s stock valued at $429,000 after acquiring an additional 1,511 shares during the period. Hedge funds and other institutional investors own 41.71% of the company’s stock.

About Sinclair

Sinclair Broadcast Group, Inc (NASDAQ: SBGI) is a media and entertainment company headquartered in Hunt Valley, Maryland. Founded in 1971 as a single UHF television station operator, Sinclair has grown through strategic acquisitions and organic expansion to become one of the largest owners of local television stations in the United States. Over its history, the company has pursued a diversified portfolio that includes both traditional broadcast assets and newer digital platforms.

At its core, Sinclair operates over 190 television stations affiliated with the major national broadcast networks, including ABC, CBS, NBC, Fox, The CW and MyNetworkTV.