Gray Media (NYSE:GTN) Posts Quarterly Earnings Results, Beats Estimates By $0.29 EPS

Gray Media (NYSE:GTN) released its earnings results on Friday. The company reported $0.21 EPS for the quarter, beating analysts’ consensus estimates of ($0.08) by $0.29, FiscalAI reports. The company had revenue of $839.00 million during the quarter, compared to analysts’ expectations of $795.13 million. Gray Media had a negative return on equity of 3.07% and a negative net margin of 3.12%.The firm’s revenue for the quarter was up 8.7% compared to the same quarter last year. During the same quarter last year, the business posted ($0.71) EPS.

Here are the key takeaways from Gray Media’s conference call:

• Second-quarter results exceeded guidance: Revenue rose 9% year over year to $839 million, while adjusted EBITDA reached $214 million. Political revenue was $83 million, above the company’s $60 million–$70 million outlook.
• Gray expects strong political advertising momentum, forecasting $165 million–$185 million of political revenue in Q3 amid significant exposure to competitive Senate, gubernatorial, and House races. Management plans to use substantially all incremental political cash flow to reduce debt.
• The company continued balance-sheet management by redeeming $50 million of preferred equity, repurchasing $120 million of debt, and authorizing up to $250 million more in debt purchases. Management said refinancing and repurchases could reduce annual interest expense by more than $30 million.
• Net retransmission revenue reached $150 million and is expected to accelerate into 2027 as newly acquired stations contribute and existing contracts remain in place. Management expects organic growth in the low single digits, plus additional acquisition-related revenue.
• Core advertising remained soft, declining 1% as reported and an estimated mid-single digits excluding acquisitions, with additional pressure from political crowd-out and an uncertain macroeconomic environment. Gray expects Q3 core advertising to be flat as reported only because acquisition growth offsets underlying weakness.

Gray Media Trading Up 24.8%

Shares of GTN stock opened at $5.34 on Friday. Gray Media has a 12-month low of $3.50 and a 12-month high of $6.43. The company has a current ratio of 1.20, a quick ratio of 1.20 and a debt-to-equity ratio of 2.72. The firm’s 50 day moving average is $4.01 and its 200 day moving average is $4.52. The stock has a market capitalization of $548.73 million, a P/E ratio of -8.76 and a beta of 0.94.

Gray Media Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be given a dividend of $0.08 per share. The ex-dividend date is Tuesday, September 15th. This represents a $0.32 dividend on an annualized basis and a yield of 6.0%. Gray Media’s dividend payout ratio is -52.46%.

Key Headlines Impacting Gray Media

Here are the key news stories impacting Gray Media this week:

• Positive Sentiment: Quarterly earnings significantly exceeded expectations: Gray Media reported adjusted earnings of $0.21 per share, compared with the consensus estimate of a $0.08 per-share loss and a $0.42 per-share loss in the year-ago quarter. Gray Media Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Revenue also beat estimates and grew year over year: Second-quarter revenue was $839.0 million, above the $795.1 million consensus forecast and up 8.7% from the prior-year period. Management said the results are beginning to reflect benefits from its merger-and-acquisition activity. Gray Media Announces Second Quarter Financial Results
• Positive Sentiment: Third-quarter revenue guidance was well above expectations: Gray projected revenue of $935 million to $965 million, compared with analyst expectations of approximately $892 million. The company did not provide a readable EPS guidance figure in the release data.
• Positive Sentiment: Dividend maintained: Gray declared a quarterly cash dividend of $0.08 per share, payable September 30 to shareholders of record on September 15. The annualized payout is $0.32 per share, representing an indicated yield of roughly 6% based on the cited share price. Gray Announces Quarterly Cash Dividend
• Neutral Sentiment: Financial risks remain: Despite the quarterly beat, Gray reported a negative net margin and negative return on equity, while its balance sheet carries relatively high leverage. Investors may therefore focus on whether stronger revenue and M&A-related benefits can translate into sustainable cash flow and profitability.

Analysts Set New Price Targets

A number of analysts have recently commented on GTN shares. Guggenheim dropped their target price on shares of Gray Media from $8.00 to $7.00 and set a “buy” rating on the stock in a report on Friday, May 15th. Barrington Research reiterated an “outperform” rating and set a $6.50 price objective on shares of Gray Media in a research note on Tuesday, April 28th. Weiss Ratings cut Gray Media from a “sell (d+)” rating to a “sell (d)” rating in a research note on Friday, May 15th. Finally, Wall Street Zen upgraded Gray Media from a “sell” rating to a “hold” rating in a report on Sunday, May 17th. Three equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Gray Media currently has an average rating of “Hold” and a consensus price target of $7.88.

Insiders Place Their Bets

In other Gray Media news, Director Richard Lee Boger sold 57,000 shares of the business’s stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $4.40, for a total transaction of $250,800.00. Following the completion of the sale, the director directly owned 4,591 shares in the company, valued at approximately $20,200.40. The trade was a 92.55% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 8.95% of the company’s stock.

Institutional Trading of Gray Media

Several large investors have recently modified their holdings of GTN. Vanguard Group Inc. increased its position in Gray Media by 4.4% during the third quarter. Vanguard Group Inc. now owns 5,998,630 shares of the company’s stock valued at $34,672,000 after acquiring an additional 251,419 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its position in Gray Media by 23.7% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 5,188,712 shares of the company’s stock worth $25,113,000 after purchasing an additional 994,474 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in shares of Gray Media by 55.3% during the 4th quarter. Goldman Sachs Group Inc. now owns 2,878,508 shares of the company’s stock valued at $13,932,000 after purchasing an additional 1,025,133 shares during the period. AQR Capital Management LLC grew its stake in shares of Gray Media by 76.6% during the 2nd quarter. AQR Capital Management LLC now owns 1,361,807 shares of the company’s stock valued at $6,169,000 after purchasing an additional 590,704 shares during the period. Finally, Russell Investments Group Ltd. increased its position in shares of Gray Media by 81.7% during the 3rd quarter. Russell Investments Group Ltd. now owns 1,209,751 shares of the company’s stock valued at $6,992,000 after purchasing an additional 543,874 shares during the last quarter. Institutional investors own 78.64% of the company’s stock.

Gray Media Company Profile

Gray Media (NYSE:GTN) is a U.S.-based broadcasting and digital media company that owns and operates a portfolio of local television stations and associated digital platforms. The company’s core business centers on delivering local news, sports and entertainment programming through its network-affiliated broadcast outlets. In addition to traditional over-the-air distribution, Gray Media supports multi-platform video streaming and on-demand services for audiences across its markets.

Gray Media’s television stations carry network programming from major national broadcasters, including ABC, CBS, NBC, Fox and The CW, and often feature locally produced news and public affairs content.