Gray Media (NYSE:GTN) Posts Quarterly Earnings Results, Misses Expectations By $0.20 EPS

Gray Media (NYSE:GTN) released its quarterly earnings data on Friday. The company reported $0.66 EPS for the quarter, missing analysts’ consensus estimates of $0.86 by ($0.20), FiscalAI reports. The firm had revenue of $972.00 million during the quarter, compared to analyst estimates of $955.75 million. Gray Media had a negative return on equity of 1.12% and a negative net margin of 0.83%. The company’s quarterly revenue was up 29.8% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.24) EPS.

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

• Political advertising hit a record: Q3 political revenue was $198 million, above guidance, and Gray expects $630 million–$640 million through Election Day for 2026, surpassing its prior record.
• Debt reduction and refinancing are expected to lower interest costs: Gray plans to pay down another $175 million–$200 million of debt by year-end and anticipates at least $40 million in lower interest costs in 2027.
• Retransmission revenue is showing improvement: Q3 net retransmission revenue was $150 million, at the high end of guidance, and management expects gross and net retransmission revenue to grow in 2027.
• Underlying core advertising remains pressured: Q3 core ad revenue excluding acquisitions was down mid-single digits, while Q4 is pacing down low to mid-single digits amid political crowd-out and macroeconomic softness. Management said early Q1 same-station pacing is positive, though comparisons are challenging.
• Digital revenue and acquisition integration are progressing: Digital revenue grew 12% year over year, and Gray expects acquired-station expenses to decline as integration continues, with the benefits largely flowing through in 2027.

Gray Media Stock Performance

GTN traded up $0.01 during trading on Friday, hitting $4.89. The stock had a trading volume of 1,537,795 shares, compared to its average volume of 856,003. The firm has a market cap of $504.09 million, a PE ratio of -8.02, a P/E/G ratio of 0.09 and a beta of 1.01. Gray Media has a 12 month low of $3.55 and a 12 month high of $6.43. The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 2.73. The company has a 50 day simple moving average of $4.65 and a 200-day simple moving average of $4.59.

Gray Media Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 31st. Investors of record on Tuesday, December 15th will be issued a $0.08 dividend. This represents a $0.32 annualized dividend and a yield of 6.5%. The ex-dividend date is Tuesday, December 15th. Gray Media’s dividend payout ratio (DPR) is -52.46%.

Analyst Upgrades and Downgrades

GTN has been the subject of several recent research reports. Zacks Research downgraded shares of Gray Media from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, October 28th. Weiss Ratings downgraded shares of Gray Media from a “sell (d+)” rating to a “sell (d)” rating in a report on Friday, October 9th. Finally, Wall Street Zen upgraded Gray Media from a “hold” rating to a “buy” rating in a report on Saturday, October 10th. Three equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $7.88.

Key Stories Impacting Gray Media

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

• Positive Sentiment: Full-year 2026 revenue guidance is $3.7 billion, above the $3.6 billion consensus estimate. Fourth-quarter revenue guidance of $1.1 billion is in line with expectations. Gray Media Announces Third Quarter Financial Results
• Positive Sentiment: Third-quarter revenue was $972 million, topping analysts’ $955.75 million estimate and rising 29.8% year over year. Gray Media third-quarter earnings report
• Positive Sentiment: Gray Media authorized a quarterly cash dividend of $0.08 per share, payable December 31 to shareholders of record on December 15. Gray announces quarterly cash dividend
• Negative Sentiment: Third-quarter EPS was $0.66, below analysts’ estimates of roughly $0.84–$0.86. The earnings shortfall may weigh on sentiment despite the revenue beat; the company also reported a negative net margin. Gray Media misses Q3 earnings estimates

About Gray Media

Gray Media, formerly known as Gray Television, is a multimedia company that owns and operates local television stations and related digital media properties in markets across the United States. Its stations provide local news, weather, sports, public affairs and entertainment programming, while also distributing content through websites, mobile platforms and other digital channels.

The company’s broadcast portfolio includes affiliates of major networks such as ABC, CBS, NBC, FOX and The CW, as well as independent and specialty stations.