Sinclair Broadcast Group Earnings: Here’s Why Investors are Selling Shares Now

Sinclair Broadcast Group Inc. (NASDAQ:SBGI) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2%.

Sinclair Broadcast Group Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 48.65% to $0.19 in the quarter versus EPS of $0.37 in the year-earlier quarter.

Revenue: Rose 23.92% to $314.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sinclair Broadcast Group Inc. reported adjusted EPS income of $0.19 per share. By that measure, the company beat the mean analyst estimate of $0.10. It beat the average revenue estimate of $311.8 million.

Quoting Management: “The first half of 2013 has been very successful for the Company, not only with respect to the Company’s results but on growing our platform through additional acquisitions of broadcast assets, especially our most recently announced planned acquisition of the Allbritton stations and their local news cable/satellite channel,” commented David Smith, President and CEO of Sinclair. “Since April 1, 2013, we have announced definitive agreements for the acquisition of 35 additional stations bringing the total number of acquired or announced stations in the past two years to 91. The effect is to not only grow our national footprint and reach, but to unlock operating synergies, gain access to valuable spectrum, and build a platform whereby we can expand content offerings and shape the future of the broadcast industry. We are excited about the successes we have achieved and the additional value that we have created and anticipate creating for our shareholders.”

Key Stats (on next page)…

Revenue increased 11.17% from $282.62 million in the previous quarter. EPS decreased 9.52% from $0.21 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.33 to a profit $0.42. For the current year, the average estimate has moved down from a profit of $1.18 to a profit of $1.13 over the last ninety days.

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