NEXSTAR MEDIA Reports Q2 FY2023 Earnings Results for June 30, 2023
August 24, 2023
🌥️Earnings Overview
On August 8 2023, NEXSTAR MEDIA ($NASDAQ:NXST) announced its financial results for the second quarter of FY2023, which ended on June 30 2023. Total revenue for the quarter was USD 1240.0 million, a decrease of 0.4% from the same quarter of the previous year. Net income for the quarter was USD 96.0 million, a decrease of 57.8% compared to the same quarter of FY2022.
Market Price
NEXSTAR MEDIA reported its second quarter FY2023 financial results for the period ended June 30, 2023 on Tuesday. According to the report, the stock opened at $177.0 and closed at $176.7, a decrease of 4.0% from the previous closing price of $184.1. This was largely due to increased costs associated with broadcasting and syndication, along with higher benefits and other corporate costs. This was mainly due to higher advertising revenue, lower programming costs, and cost savings from operational efficiencies.
NEXSTAR MEDIA has also continued to expand its international presence, acquiring stations in the Dominican Republic and setting up joint ventures in Europe and Asia. NEXSTAR MEDIA’s Q2 FY2023 earnings results show that despite decreased profitability, the company is continuing to make strategic investments in international markets which will likely pay dividends in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Nexstar Media. More…
| Total Revenues | Net Income | Net Margin |
| 5.25k | 699.1 | 14.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Nexstar Media. More…
| Operations | Investing | Financing |
| 1.27k | 67.2 | -1.27k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Nexstar Media. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 12.31k | 9.75k | 70.92 |
Key Ratios Snapshot
Some of the financial key ratios for Nexstar Media are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.7% | 15.4% | 24.1% |
| FCF Margin | ROE | ROA |
| 21.0% | 30.6% | 6.4% |
Analysis
At GoodWhale, we have conducted an analysis of NEXSTAR MEDIA‘s fundamentals. After careful consideration, we’ve determined that NEXSTAR MEDIA is a medium risk investment in terms of financial and business aspects. We have also detected one risk warning in their balance sheet. To see this warning, you’ll need to become a registered user of GoodWhale. Our analysis is intended to provide insight into the current stability and future potential of NEXSTAR MEDIA. We hope this helps you make an informed decision on whether or not to invest in them. More…
Peers
The company competes with Sinclair Broadcast Group Inc, Fox Corp, and Klassik Radio AG in the provision of local news and entertainment programming.
– Sinclair Broadcast Group Inc ($NASDAQ:SBGI)
Sinclair Broadcast Group Inc is a publicly traded company with a market cap of 1.26B as of 2022. The company operates in the broadcasting industry and owns and operates, programs, or provides sales and other services to television stations in the United States. As of 2018, Sinclair Broadcast Group Inc operated a total of 193 television stations. The company also owns and operates four regional sports networks, a digital program network, and a cable network channel.
– Fox Corp ($NASDAQ:FOXA)
Fox Corporation is an American media company that is primarily involved in the production and distribution of news and entertainment content. The company has a market capitalization of 15.38 billion as of 2022 and a return on equity of 11.49%. Fox Corporation is the parent company of a number of media businesses, including the Fox News Channel, Fox Business Network, Fox Sports, and Fox Television Stations.
– Klassik Radio AG ($LTS:0EXW)
Klassik Radio AG is a German radio station that offers a wide range of classical music. It has a market cap of 22.97M as of 2022 and a return on equity of 14.02%. The company’s mission is to promote the appreciation of classical music and to make it accessible to as many people as possible.
Summary
Investors in NEXSTAR MEDIA have been disappointed by the company’s financial results for the second quarter of FY2023. Total revenue for the quarter was lower than the same quarter of the previous year, amounting to USD 1240.0 million, a decrease of 0.4%. Net income was also down significantly, falling 57.8% to USD 96.0 million.
The stock price reacted accordingly, dropping on the same day as the release of this financial information. Going forward, investors will be closely watching to see if the company can turn around its fortunes and return to profitability.
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