Local broadcasting and digital media company Nexstar (NASDAQ:NXST) will be reporting earnings tomorrow before the bell. Here’s what you need to know.
Nexstar Media missed analysts’ revenue expectations by 1% last quarter, reporting revenues of $1.27 billion, up 2.3% year on year. It was a slower quarter for the company, with a miss of analysts’ earnings estimates.
Is Nexstar Media a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Nexstar Media’s revenue to grow 20.6% year on year to $1.36 billion, a reversal from the 10.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.43 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Nexstar Media has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Nexstar Media’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. FOX delivered year-on-year revenue growth of 11.1%, beating analysts’ expectations by 5.7%, and E.W. Scripps reported revenues up 14.1%, topping estimates by 2.7%. FOX traded up 4.1% following the results while E.W. Scripps was down 35.1%.
Read our full analysis of FOX’s results here and E.W. Scripps’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 3.3% on average over the last month. Nexstar Media is up 5.9% during the same time and is heading into earnings with an average analyst price target of $196.80 (compared to the current share price of $172.87).
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