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

Sinclair (NASDAQ:SBGI) released its quarterly earnings results on Wednesday. The company reported ($1.06) earnings per share for the quarter, missing the consensus estimate of ($0.24) by ($0.82), FiscalAI reports. Sinclair had a negative return on equity of 12.62% and a net margin of 2.00%.The company had revenue of $840.00 million for the quarter, compared to analysts’ expectations of $838.99 million. During the same period in the previous year, the business posted ($0.91) EPS. The business’s quarterly revenue was up 7.1% on a year-over-year basis.

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 Trading Up 6.2%

Shares of SBGI stock traded up $0.87 on Thursday, reaching $14.78. 1,175,343 shares of the stock were exchanged, compared to its average volume of 469,959. The firm has a 50 day moving average of $14.05 and a two-hundred day moving average of $14.35. Sinclair has a 1-year low of $11.89 and a 1-year high of $17.88. The company has a quick ratio of 2.42, a current ratio of 2.42 and a debt-to-equity ratio of 11.10. The stock has a market cap of $1.07 billion, a P/E ratio of 16.42 and a beta of 1.06.

Sinclair Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Monday, August 31st will be paid a dividend of $0.25 per share. The ex-dividend date of this dividend is Monday, August 31st. This represents a $1.00 annualized dividend and a dividend yield of 6.8%. Sinclair’s payout ratio is currently 111.11%.

Analyst Ratings Changes

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

Insider Activity at Sinclair

In related news, Director Daniel C. Keith sold 17,000 shares of the firm’s stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $15.02, for a total value of $255,340.00. Following the transaction, the director owned 25,122 shares in the company, valued at approximately $377,332.44. This trade represents a 40.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 42.10% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Trexquant Investment LP acquired a new stake in Sinclair in the fourth quarter valued at approximately $170,000. Inceptionr LLC acquired a new stake in Sinclair during the 4th quarter valued at $178,000. State of Wyoming purchased a new stake in Sinclair during the 4th quarter worth $136,000. Creative Planning purchased a new stake in Sinclair during the 3rd quarter worth $156,000. Finally, The Manufacturers Life Insurance Company lifted its holdings in Sinclair by 21.1% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 14,126 shares of the company’s stock worth $195,000 after buying an additional 2,459 shares in the last quarter. 41.71% of the stock is owned by hedge funds and other institutional investors.

Key Sinclair News

Here are the key news stories impacting Sinclair this week:

• Positive Sentiment: The Federal Communications Commission voted to remove long-standing national ownership limits for local broadcasters. Sinclair said the change could provide greater flexibility to expand, consolidate and operate local television stations, supporting potential long-term cost and revenue synergies. Sinclair Commends Removal of Artificial Limits on Local Broadcasters
• Positive Sentiment: Sinclair declared a quarterly cash dividend of $0.25 per share, payable September 15 to shareholders of record August 31. The dividend represents an annualized payout of $1.00 per share and a reported yield of approximately 7.2%, which may appeal to income-focused investors. Sinclair Declares Quarterly Cash Dividend
• Positive Sentiment: Second-quarter revenue reached $840 million, essentially matching expectations of $839 million and increasing 7.1% year over year. The revenue performance suggests continued operating growth despite pressure on profitability. Sinclair Reports Second Quarter 2026 Financial Results
• Neutral Sentiment: Sinclair reiterated or updated full-year 2026 revenue guidance to $3.4 billion-$3.5 billion, with the top end roughly matching analyst expectations. However, the available guidance report does not specify the updated EPS outlook, limiting visibility into earnings.
• Negative Sentiment: Second-quarter adjusted results showed a loss of $1.06 per share, substantially worse than the expected $0.24 loss and the $0.91 loss recorded a year earlier. The earnings miss highlights ongoing profitability and cost pressures. Sinclair Reports Q2 Loss and Tops Revenue Estimates

Sinclair Company Profile

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.