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, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.98%.

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Sinclair Broadcast Group Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 41.67% to $0.21 in the quarter versus EPS of $0.36 in the year-earlier quarter.

Revenue: Rose 26.26% to $282.62 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sinclair Broadcast Group Inc. reported adjusted EPS income of $0.21 per share. By that measure, the company beat the mean analyst estimate of $0.17. It missed the average revenue estimate of $290.71 million.

Quoting Management: “2013 is off to a solid start with $2.5 million of incremental Super Bowl revenues in the first quarter, increased ad spending by our largest advertising category of automotive, and a very good February ratings book that highlighted the importance and popularity of local news,” commented David Smith, President and CEO of Sinclair. “The market for television stations remains robust, and we are pleased that we have been able to obtain quality assets at accretive prices. We are excited the Barrington Broadcasting, Fisher Communications and certain of the COX Media Group stations will soon be joining us. We intend to continue analyzing and evaluating opportunities to acquire additional television station assets towards creating greater scale for our operations and value for our shareholders.”

Key Stats (on next page)…

Revenue decreased 13% from $324.86 million in the previous quarter. EPS decreased 70.83% from $0.72 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 $0.32 to a profit $0.30. For the current year, the average estimate has moved up from a profit of $1.33 to a profit of $1.41 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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