Gray Media (NYSE:GTN) Releases Earnings Results, Beats Expectations By $0.29 EPS

Gray Media (NYSE:GTN) announced its quarterly earnings data on Friday. The company reported $0.21 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.08) by $0.29, FiscalAI reports. The company had revenue of $839.00 million for 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%.Gray Media’s revenue was up 8.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.71) earnings per share.

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 Stock Up 24.8%

Shares of NYSE GTN traded up $1.06 during trading hours on Friday, hitting $5.34. 4,321,859 shares of the stock were exchanged, compared to its average volume of 1,110,169. The company has a quick ratio of 1.20, a current ratio of 1.20 and a debt-to-equity ratio of 2.72. The company has a market cap of $548.72 million, a PE ratio of -3.49 and a beta of 0.94. The firm has a fifty day moving average price of $4.01 and a 200-day moving average price of $4.52. Gray Media has a 12 month low of $3.50 and a 12 month high of $6.43.

Gray Media Announces Dividend

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

Insider Transactions at Gray Media

In related news, Director Richard Lee Boger sold 57,000 shares of the business’s stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $4.40, for a total transaction of $250,800.00. Following the transaction, the director directly owned 4,591 shares in the company, valued at $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 available through this link. 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 Investors Weigh In On Gray Media

Several institutional investors have recently added to or reduced their stakes in the business. Acadian Asset Management LLC acquired a new position in Gray Media during the 1st quarter valued at approximately $28,000. CANADA LIFE ASSURANCE Co lifted its stake in shares of Gray Media by 68.2% during the fourth quarter. CANADA LIFE ASSURANCE Co now owns 10,401 shares of the company’s stock worth $50,000 after buying an additional 4,217 shares during the period. Engineers Gate Manager LP acquired a new stake in shares of Gray Media during the fourth quarter worth $55,000. Dynamic Technology Lab Private Ltd purchased a new stake in shares of Gray Media during the fourth quarter valued at $63,000. Finally, Squarepoint Ops LLC purchased a new stake in shares of Gray Media during the fourth quarter valued at $71,000. Institutional investors and hedge funds own 78.64% of the company’s stock.

Trending Headlines about 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

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

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.