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

Gray Media (NYSE:GTN) announced its earnings results on Friday. The company reported $0.21 EPS for the quarter, topping the consensus estimate of ($0.08) by $0.29, FiscalAI reports. The firm had revenue of $839.00 million for the quarter, compared to the consensus estimate of $795.13 million. Gray Media had a negative return on equity of 3.07% and a negative net margin of 3.12%.The business’s quarterly revenue was up 8.7% compared to the same quarter last year. During the same period in the previous year, the business earned ($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 traded up $1.06 during mid-day trading on Friday, hitting $5.34. The company’s stock had a trading volume of 4,321,859 shares, compared to its average volume of 1,110,169. The company has a market cap of $548.73 million, a PE ratio of -3.49 and a beta of 0.94. The company has a debt-to-equity ratio of 2.72, a quick ratio of 1.20 and a current ratio of 1.20. The company’s fifty day simple moving average is $4.01 and its 200-day simple moving average is $4.52. Gray Media has a 52 week low of $3.50 and a 52 week high of $6.43.

Gray Media Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be given a $0.08 dividend. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $0.32 annualized dividend and a dividend yield of 6.0%. Gray Media’s dividend payout ratio (DPR) is -20.92%.

Analyst Upgrades and Downgrades

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

Insider Activity at Gray Media

In related news, Director Richard Lee Boger sold 57,000 shares of the company’s stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $4.40, for a total transaction of $250,800.00. Following the sale, the director owned 4,591 shares in the company, valued at $20,200.40. This represents a 92.55% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 8.95% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Gray Media

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

About Gray Media

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.