Nexstar Broadcasting Group Earnings: Here’s Why Investors Don’t Like These Results

Nexstar Broadcasting Group Inc. (NASDAQ:NXST) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 3.27%.

Nexstar Broadcasting Group Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 31.03% to $0.2 in the quarter versus EPS of $0.29 in the year-earlier quarter.

Revenue: Rose 42.03% to $126.21 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Nexstar Broadcasting Group Inc. reported adjusted EPS income of $0.2 per share. By that measure, the company missed the mean analyst estimate of $0.29. It beat the average revenue estimate of $123.14 million.

Quoting Management: Perry A. Sook, Chairman, President and Chief Executive Officer of Nexstar Broadcasting Group, Inc., commented, “Nexstar’s growth and operating momentum is accelerating in 2013 and we remain confident that continued year-over-year growth in all of our non-political revenue sources in the second half of the year will result in record annual revenue and free cash flow. Reflecting contributions from recently completed acquisitions as well as our focus on managing operations for current cash flow and future growth, all of our non-political revenue sources posted significant second quarter increases leading to record second quarter net revenue, adjusted EBITDA and free cash flow. Nexstar’s year-to-date results and contributions from new stations are as expected and we look forward to the completion later this year of the accretive acquisition of nineteen television stations which was announced in April.”

Key Stats (on next page)…

Revenue increased 12.48% from $112.21 million in the previous quarter. EPS increased 900% from $0.02 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.31 to a profit $0.28. For the current year, the average estimate has moved up from a profit of $1.15 to a profit of $1.16 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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