Sinclair (NASDAQ:SBGI) Announces Earnings Results, Beats Expectations By $0.33 EPS

Sinclair (NASDAQ:SBGI) posted its earnings results on Wednesday. The company reported $0.60 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.27 by $0.33, FiscalAI reports. The business had revenue of $893.00 million during the quarter, compared to analysts’ expectations of $874.21 million. Sinclair had a negative return on equity of 3.94% and a net margin of 2.84%. Sinclair’s revenue for the quarter was up 15.5% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.02) EPS.

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

• Sinclair expects record 2026 political revenue of approximately $455 million, up 37% from the 2022 midterm cycle and well above its prior outlook. Third-quarter revenue rose 16% to $893 million and Adjusted EBITDA more than doubled; the company raised full-year Adjusted EBITDA guidance by $85 million at the midpoint.
• Distribution revenue increased 1% as subscriber churn moderated, and Sinclair reduced debt by about $355 million year to date. STG net leverage fell to 5.1x from 6.0x a year earlier, with management prioritizing further debt reduction.
• Core advertising revenue declined 4% in the quarter amid political crowd-out and cautious, cost-pressured advertisers. Management also flagged 2027 headwinds, including no Olympics or World Cup and uncertainty around the MLB season.
• Tennis Channel’s core revenue grew 21%, supported by audience gains and D2C subscriber growth, while the company plans new apps and continued streaming investment. Tennis Adjusted EBITDA fell about $1 million as programming, production, and platform investment costs increased.
• Sinclair will not separate Ventures on a standalone basis, citing the value of strategic flexibility, but says a larger broadcast transaction that could include a spin-merge remains under consideration. Management also expects further station-optimization deals, while noting larger broadcast M&A may depend on resolution of the Nexstar–TEGNA situation.

Sinclair Stock Down 3.4%

NASDAQ:SBGI traded down $0.48 during trading hours on Friday, reaching $13.69. 287,031 shares of the stock were exchanged, compared to its average volume of 487,464. The stock has a market cap of $990.03 million, a PE ratio of 9.98 and a beta of 1.24. Sinclair has a twelve month low of $11.83 and a twelve month high of $17.88. The firm has a 50 day moving average of $13.16 and a 200 day moving average of $14.05. The company has a debt-to-equity ratio of 13.28, a current ratio of 1.94 and a quick ratio of 1.94.

Sinclair Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be paid a $0.25 dividend. The ex-dividend date is Tuesday, December 1st. This represents a $1.00 annualized dividend and a yield of 7.3%. Sinclair’s payout ratio is presently 72.99%.

Insider Activity

In other news, EVP David Gibber sold 29,246 shares of Sinclair stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $13.74, for a total value of $401,840.04. Following the sale, the executive vice president directly owned 184,244 shares in the company, valued at $2,531,512.56. This trade represents a 13.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 42.10% of the stock is owned by company insiders.

Analyst Ratings Changes

Several research analysts have recently weighed in on the stock. Weiss Ratings cut shares of Sinclair from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday, October 8th. Wall Street Zen lowered shares of Sinclair from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. JPMorgan Chase & Co. raised their price objective on shares of Sinclair from $14.00 to $15.00 and gave the stock an “underweight” rating in a report on Friday, August 21st. Finally, Zacks Research raised shares of Sinclair from a “strong sell” rating to a “hold” rating in a research report on Tuesday, September 8th. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $19.40.

About Sinclair

Sinclair, Inc is a diversified media company that owns and operates local television stations across the United States. Its broadcast portfolio includes ABC, CBS, FOX, NBC, and other network-affiliated stations, as well as independent stations. Sinclair’s local media operations produce news, weather, sports, and community-focused programming for viewers in markets throughout the country.

The company also develops and distributes national and regional content through cable networks, digital platforms, and streaming services.