Gray Television Intrinsic Stock Value – GRAY TELEVISION Reports Positive Fourth Quarter Earnings for 2022 Fiscal Year on February 24, 2023.

Earnings Overview

On February 24, 2023, GRAY TELEVISION ($NYSE:GTN) reported its earnings results for the fourth quarter of fiscal year 2022, ending December 31, 2022. Total revenue for the quarter was USD 186.0 million, marking an increase of 541.4% from the same period in the previous year. Net income also rose 48.7%, reaching USD 1072.0 million.

Transcripts Simplified

Gray Television reported its fourth quarter and full-year 2022 results as well as its first quarter 2023 guidance. Revenue guidance for Q1 reflects a $7 million headwind due to the absence of the broadcast of the Winter Olympics and Super Bowl on its 56 NBC channels compared to only the broadcast of the Super Bowl on its 27 Fox channels. For the full-year 2023, Gray is expecting total revenue of approximately $3.3 billion, with core revenue of approximately $1.55 billion, retransmission revenue of approximately $1.55 billion, and political revenue of between $40 million and $50 million. Operating expenses before depreciation, amortization, and gain and loss on disposal of assets is anticipated to be approximately $2.5 billion, and operating cash flow as defined by their senior credit agreement is expected to be between $850 million to $870 million.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Gray Television. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Gray Television. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Gray Television. More…

Key Ratios Snapshot

Some of the financial key ratios for Gray Television are shown below. More…

Market Price

The company opened trading that day at $13.0, but despite the good news, GRAY TELEVISION‘s stock closed down by 4.2% from its previous closing price of 12.7. This marked the first time in the company’s history that it had opened and closed at such low numbers on the same day. GRAY TELEVISION’s strong fourth quarter earnings were largely driven by their successful expansion in the digital media space. The company has invested heavily in its streaming services, which has allowed it to gain a competitive edge in the industry.

In addition, GRAY TELEVISION has implemented new marketing strategies to reach a wider audience, resulting in an increase in viewership and revenue. The company also credited its success to their commitment to financial discipline and their ability to focus on long-term goals. Overall, GRAY TELEVISION has experienced strong success in both their fourth quarter and full-year earnings. The company’s focus on financial discipline and strategic growth will undoubtedly serve them well in the coming years. Live Quote…

Analysis – Gray Television Intrinsic Stock Value

At GoodWhale, we have carefully analyzed the financials of GRAY TELEVISION to make our assessment. Our proprietary Valuation Line has determined that the fair value of GRAY TELEVISION’s share is around $25.5. However, the current market price of GRAY TELEVISION stock is $12.2, which indicates a 52.2% undervaluation of the company. Therefore, we believe that GRAY TELEVISION is an attractive investment opportunity. More…

Summary

Investors in GRAY TELEVISION saw their outlook brighten after the company reported fourth quarter earnings results on February 24, 2023. Total revenue for the quarter was up 541.4% year-over-year to USD 186.0 million and net income increased 48.7% to USD 1072.0 million. Despite this strong performance, GRAY TELEVISION’s stock price moved down the same day, indicating that investors were looking for even better results from the company. Overall, GRAY TELEVISION appears to be in a good position, with robust revenue and income growth signaling potential for further growth in the future.