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What's in Store for Nexstar Media Group (NXST) in Q1 Earnings?
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Nexstar Media Group (NXST - Free Report) is set to report first-quarter 2021 results on May 4.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.08 billion, indicating marginal decline of 0.9% from the year-ago quarter.
The Zacks Consensus Estimate for first-quarter earnings has remained steady at $3.11 per share over the past 30 days, indicating decline of 5.7% from the year-ago quarter.
Notably, the company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 46.6%.
Nexstar Media Group’s first-quarter results are expected to reflect increases in viewership on its channels boosted by coronavirus-led social distancing and work-from-home norms. Local news programming is expected to have benefited as consumers sought more information regarding their communities.
Moreover, post the completion of Tribune Media acquisition deal, Nexstar has become one of the largest television broadcasters in the United States. As of Dec 31, 2020, Nexstar owned, operated, programmed or provided sales and other services to 198 full power television stations, in 116 markets in 39 states and the District of Columbia.
The company’s strong position in the domestic market and higher political advertising revenues are key catalysts.
The company has been benefiting from strong advertising rebound across station footprint, most notably in sports programming besides auto, the company’s largest category, which represented 18% of total local and national advertising revenues in 2020.
The resumption in auto category spending has been complemented by a resurgence in ad spending in insurance, gaming, sports betting, home service, home repair, drug stores, packaged goods, grocery stores and retirement and nursing homes.
However increasing costs and expenses are expected to have weighed on bottom-line growth in the to-be-reported quarter. The company projects recurring cash and corporate overheads, exclusive of stock compensation and transaction costs to be nearly $30 million for first-quarter 2021. Non-cash compensation is expected to be over $12 million while transaction expenses are projected to nearly $5 million for the quarter.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Nexstar Media Group has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
CDW Corporation (CDW - Free Report) has an Earnings ESP of +0.51% and a Zacks Rank #2.
AMETEK (AME - Free Report) has an Earnings ESP of +0.49% and a Zacks Rank #3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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What's in Store for Nexstar Media Group (NXST) in Q1 Earnings?
Nexstar Media Group (NXST - Free Report) is set to report first-quarter 2021 results on May 4.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.08 billion, indicating marginal decline of 0.9% from the year-ago quarter.
The Zacks Consensus Estimate for first-quarter earnings has remained steady at $3.11 per share over the past 30 days, indicating decline of 5.7% from the year-ago quarter.
Notably, the company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 46.6%.
Nexstar Media Group, Inc Price and EPS Surprise
Nexstar Media Group, Inc price-eps-surprise | Nexstar Media Group, Inc Quote
Factors to Note
Nexstar Media Group’s first-quarter results are expected to reflect increases in viewership on its channels boosted by coronavirus-led social distancing and work-from-home norms. Local news programming is expected to have benefited as consumers sought more information regarding their communities.
Moreover, post the completion of Tribune Media acquisition deal, Nexstar has become one of the largest television broadcasters in the United States. As of Dec 31, 2020, Nexstar owned, operated, programmed or provided sales and other services to 198 full power television stations, in 116 markets in 39 states and the District of Columbia.
The company’s strong position in the domestic market and higher political advertising revenues are key catalysts.
The company has been benefiting from strong advertising rebound across station footprint, most notably in sports programming besides auto, the company’s largest category, which represented 18% of total local and national advertising revenues in 2020.
The resumption in auto category spending has been complemented by a resurgence in ad spending in insurance, gaming, sports betting, home service, home repair, drug stores, packaged goods, grocery stores and retirement and nursing homes.
However increasing costs and expenses are expected to have weighed on bottom-line growth in the to-be-reported quarter. The company projects recurring cash and corporate overheads, exclusive of stock compensation and transaction costs to be nearly $30 million for first-quarter 2021. Non-cash compensation is expected to be over $12 million while transaction expenses are projected to nearly $5 million for the quarter.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Nexstar Media Group has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Fox Corporation (FOXA - Free Report) has an Earnings ESP of +13.4% and is Zacks #1 Ranked. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CDW Corporation (CDW - Free Report) has an Earnings ESP of +0.51% and a Zacks Rank #2.
AMETEK (AME - Free Report) has an Earnings ESP of +0.49% and a Zacks Rank #3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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