Sinclair (NASDAQ:SBGI) Posts Quarterly Earnings Results, Beats Estimates By $0.33 EPS

Sinclair (NASDAQ:SBGI) announced its earnings results on Wednesday. The company reported $0.60 earnings per share for the quarter, beating the consensus estimate of $0.27 by $0.33, FiscalAI reports. Sinclair had a net margin of 1.60% and a negative return on equity of 16.09%. The business had revenue of $893.00 million during the quarter, compared to the consensus estimate of $874.21 million.

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 Up 4.7%

SBGI traded up $0.63 during trading on Wednesday, hitting $14.10. The company had a trading volume of 921,242 shares, compared to its average volume of 480,406. Sinclair has a 1-year low of $11.83 and a 1-year high of $17.88. The company has a debt-to-equity ratio of 13.28, a current ratio of 1.94 and a quick ratio of 1.94. The company has a market cap of $1.02 billion, a PE ratio of 18.80 and a beta of 1.24. The business has a 50-day moving average of $13.16 and a 200-day moving average of $14.05.

Sinclair News Roundup

Here are the key news stories impacting Sinclair this week:

• Positive Sentiment: Sinclair beat consensus estimates for both earnings and revenue. Reports cited quarterly EPS of $0.54 versus a Zacks estimate of $0.23, while another report showed $0.60 versus a $0.27 estimate; revenue was $893 million, above the $874.2 million consensus. Sinclair beats Q3 estimates
• Positive Sentiment: Political advertising revenue rose 55% compared with the 2022 midterm election period, setting a record and helping lift quarterly results above expectations. Political ad revenue lifts results
• Positive Sentiment: The company’s full-year outlook was reported as slightly ahead of expectations, offering a modestly favorable signal about its near-term prospects. Q3 sales and outlook
• Neutral Sentiment: Sinclair declared a quarterly cash dividend of $0.25 per share, payable December 15 to shareholders of record December 1. This provides an income return but is not, by itself, a change to the company’s operating outlook. Sinclair declares quarterly dividend

Analyst Upgrades and Downgrades

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

Insiders Place Their Bets

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

Sinclair Company Profile

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.