Monday, February 26, 2024
Gray Television is a multimedia company headquartered in Atlanta, Georgia. We are the nation’s largest owner of top-rated local television stations and digital assets in the United States. Our television stations serve 113 television markets that collectively reach approximately 36 percent of US television households. This portfolio includes 80 markets with the top-rated television station and 100 markets with the first and/or second highest rated television station. We also own video program companies Raycom Sports, Tupelo Honey, PowerNation Studios and Third Rail Studios.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q4 Results. The company reported Q4 revenue of $864.0 million, edging our estimate of $857.0 million by 0.8%. Notably, Adj. EBITDA in the quarter was a strong $216.0 million, surpassing our estimate of $189.0 million by 14.3%. The results are illustrated in Figure #1 Q4 Results. The quarter was driven by lower than expected operating expenses. Importantly, the company is anticipating a favorable influx of high margin political revenue in 2024.
2024 outlook. In our view, the company stands to benefit from several favorable factors in 2024. Notably, we are forecasting $655.0 million in high margin political revenue for full year 2024, which should aid the company in its debt reduction efforts. Additionally, the company’s production companies are guided to produce $110.0 million in revenue in 2024, a step up from $86 million in 2023. We believe there could be positive upside in our 2024 estimates.
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This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.