Gray Television Inc. (GTN) Outlook A Solid Start To The Year

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Friday, February 26, 2021

Gray Television Inc. (GTN)
Outlook: A Solid Start To The Year

Gray Television, Inc. operates as a television broadcast company in the United States. As of April 6, 2010, it operated 36 television stations in 30 markets, including 17 affiliated with CBS Inc.; 10 affiliated with the National Broadcasting Company, Inc.; 8 affiliated with the American Broadcasting Company (ABC); and 1 affiliated with FOX Entertainment Group, Inc. (FOX). The company also operated 39 digital second channels comprising 1 affiliated with ABC, 4 affiliated with FOX, 7 affiliated with CW Network, LLC, 18 affiliated with Twentieth Television, Inc., 2 affiliated with Universal Sports Network, and 7 local news/weather channels. Gray Television, Inc. was founded in 1897 and is headquartered in Atlanta, Georgia.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Q4 results outperform. Revenues exceeded expectations, with the variance driven by better Political and Core advertising. Q4 revenues of $792 million was better than our $734 million estimate. Adjusted EBITDA was $404 million, much stronger than our $341 million estimate. Political advertising was $245 million in the quarter, well above our $217 million estimate. Coincidently, the quarter had more Political advertising than the entire year of 2018 at $235 million.

    Q1 guidance better than expected.  Total core revenues appear stronger than we expected, with guidance of 0% to 2% growth to approximately $253 million, significantly better than our $220 million estimate. Retransmission revenue was better than expected as well, with guidance of $245 million, better than our $230 million estimate. In spite of higher expenses, adjusted EBITDA is expected to be a …



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. 

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