Nexstar's Stock Dips: Q2 Earnings Fall Short Amid Mixed Advertising Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 08 2024
0mins
Should l Buy NXST?
Source: Benzinga
Financial Performance: Nexstar Media Group reported a 2.3% year-over-year increase in net revenue for Q2 FY24 to $1.269 billion, falling short of expectations. Advertising revenue rose by 2.2%, while distribution revenue increased by 5.5%. Adjusted EBITDA grew by 18.8%, but EPS was below consensus estimates.
Future Outlook: The company anticipates benefiting from record political spending on broadcast television in the latter half of the year, while also noting improvements in cash flows and ratings growth at The CW.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NXST?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on NXST
Wall Street analysts forecast NXST stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NXST is 232.25 USD with a low forecast of 204.00 USD and a high forecast of 250.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 221.270
Low
204.00
Averages
232.25
High
250.00
Current: 221.270
Low
204.00
Averages
232.25
High
250.00
About NXST
Nexstar Media Group, Inc. is a diversified media company with television broadcasting, television network and digital media assets operating in the United States. The Company produces and distributes engaging local and national news, sports and entertainment content across its television and digital platforms. The Company’s reportable broadcast segment includes television stations and related local websites that Nexstar owns, operates, programs or provides sales and other services to in various markets across the United States, NewsNation, a national cable news network, two owned and operated multicast networks and other multicast network services, and WGN-AM, a Chicago radio station. The other operating segments, The CW and digital businesses, focused on the national marketplace. The Company’s portfolio of digital assets, including its local TV station websites, The Hill and NewsNationNow.com. Its national television properties include The CW, NewsNation, Antenna TV, and Rewind TV.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Software Stocks Rebound, AppLovin Surges 14%
- Software Stock Rebound: Following last week's severe selloff, the iShares Expanded Tech-Software Sector ETF (NYSE:IGV) jumped over 3% on Monday, marking its strongest daily gain since late April 2025, indicating renewed investor interest in software stocks and a potential recovery in market confidence.
- Nasdaq Outperformance: The Nasdaq 100 climbed 1%, significantly outperforming broader Wall Street, while the S&P 500 added 0.7%, suggesting that the strong rebound in tech stocks is driving overall market gains and may attract more capital inflows.
- Individual Stock Surge: AppLovin Corp. (NASDAQ:APP) surged more than 14% after logging four consecutive weekly declines, reflecting optimistic market sentiment regarding its future growth potential, which could draw more investor attention to the company.
- Commodity Market Recovery: Oil prices rose over 2% to $64.6 a barrel, while gold rebounded 2.5% to $5,090 an ounce, and silver soared over 6% to $82 an ounce, indicating an improvement in market risk appetite that may positively impact related industries.
See More
U.S. Stocks Mostly Higher, Nasdaq Up Over 1%
- Nasdaq Performance: The Nasdaq Composite rose by 1.15% to 23,295.01 on Monday, indicating strong performance in technology stocks and reflecting increased investor confidence in the tech sector.
- Dow Jones Decline: The Dow Jones Industrial Average fell slightly by 0.07% to 50,078.58, suggesting a relative weakness in traditional sectors, which may affect overall market sentiment.
- Sally Beauty Earnings Beat: Sally Beauty Holdings Inc (NYSE:SBH) reported an adjusted EPS of 48 cents for Q1, surpassing market expectations of 46 cents, with quarterly sales of $943.168 million exceeding the anticipated $940.150 million, demonstrating the company's resilience in a competitive market.
- Commodity Market Movements: On Monday, oil prices increased by 0.8% to $64.05, gold rose by 2.2% to $5,088.80, and silver surged by 7.9% to $82.94, reflecting heightened demand for safe-haven assets, which could influence future investment strategies.
See More
Kyndryl Shares Plunge 55% Amid Audit Review and Executive Departures
- Kyndryl Stock Plunge: Kyndryl Holdings' shares tumbled 55% following the disclosure of an audit committee review of cash management practices, which not only undermines investor confidence but may also pose greater challenges for future financing and operations.
- Executive Departures Impact: The immediate departure of CFO David Wyshner and General Counsel Edward Sebold indicates potential internal management issues, which could exacerbate market concerns regarding the company's governance structure.
- Cleveland-Cliffs Poor Performance: Cleveland-Cliffs reported a wider-than-expected adjusted EBITDA loss of $21 million, primarily due to weakness in the auto and Canadian markets; although the company anticipates improvements by 2026, it still faces short-term market challenges.
- Valaris Acquisition News: Valaris shares surged 28% after agreeing to be acquired by Transocean for $5.8 billion, with Valaris shareholders set to receive 15.235 shares of Transocean stock for each Valaris share held, reflecting strong demand in the offshore drilling services market.
See More
Valaris Shares Surge 21.8% Amid Transocean Acquisition Deal
- Significant Price Surge: Valaris shares jumped 21.8% to $76.02 on Monday, reflecting strong market confidence in the company's upcoming acquisition by Transocean, indicating a positive investor sentiment towards the deal.
- Clear Transaction Terms: Under the terms of the all-stock transaction, Valaris shareholders will receive 15.235 shares of Transocean stock for each Valaris share, which may attract more investor interest in Valaris's future performance.
- Mixed Market Performance: U.S. stocks were mixed on Monday, with the Nasdaq gaining around 100 points, showcasing strong performance in tech stocks amidst volatility in other sectors, reflecting the complexity of market sentiment.
- Investor Focus: The acquisition news surrounding Valaris has sparked widespread market attention, potentially influencing the stock prices of other related companies, prompting investors to closely monitor subsequent market reactions and industry developments.
See More
Nexstar to Acquire Tegna for $3.54 Billion Amid Regulatory Review
- Acquisition Overview: Nexstar has agreed to acquire Tegna for $3.54 billion, with plans to close the deal in the second half of 2026, contingent upon regulatory approval to bypass the statutory ownership cap.
- Positive Market Reaction: Following President Trump's public endorsement of the merger, Nexstar's shares rose over 0.5%, while Tegna's shares jumped nearly 5% in early premarket trading, indicating bullish market sentiment towards the deal.
- Competitive Landscape Shift: This acquisition will position Nexstar as the largest regional TV station operator in the U.S., controlling over 200 stations compared to Tegna's 64, which is expected to enhance competitive dynamics in the media sector.
- Trump's Position Shift: Trump, who previously opposed relaxing the FCC's ownership cap, has now expressed support for the deal, suggesting that “good deals” will foster competition and alter the media landscape, although the reasons for his change in stance remain unclear.
See More
Trump Endorses Nexstar's $6.2 Billion Tegna Acquisition
- Trump's Stance Reversal: Trump endorsed Nexstar's $6.2 billion acquisition of Tegna on social media, reversing his November opposition, stating that the deal would enhance competition and help combat fake news, highlighting his concern over media competition dynamics.
- Transaction Scale and Impact: Following the acquisition, Nexstar will own over 200 stations, reaching approximately 80% of U.S. households, with the deal expected to close in the second half of 2026, further solidifying Nexstar's leadership in the broadcast news sector.
- Regulatory Challenges: The deal requires approval from the Federal Communications Commission to lift the 39% household reach cap, reflecting the critical impact of regulatory policies on the success of media industry consolidations.
- Financial Metrics Overview: Nexstar has a market capitalization of $6.71 billion, with a 52-week high of $223.43 and a low of $141.66; Tegna's market cap stands at $3.07 billion, with a 52-week high of $21.35 and a low of $14.87, indicating differing market performances and potentials for both companies.
See More
Software Stocks Rebound, AppLovin Surges 14%
- Software Stock Rebound: Following last week's severe selloff, the iShares Expanded Tech-Software Sector ETF (NYSE:IGV) jumped over 3% on Monday, marking its strongest daily gain since late April 2025, indicating renewed investor interest in software stocks and a potential recovery in market confidence.
- Nasdaq Outperformance: The Nasdaq 100 climbed 1%, significantly outperforming broader Wall Street, while the S&P 500 added 0.7%, suggesting that the strong rebound in tech stocks is driving overall market gains and may attract more capital inflows.
- Individual Stock Surge: AppLovin Corp. (NASDAQ:APP) surged more than 14% after logging four consecutive weekly declines, reflecting optimistic market sentiment regarding its future growth potential, which could draw more investor attention to the company.
- Commodity Market Recovery: Oil prices rose over 2% to $64.6 a barrel, while gold rebounded 2.5% to $5,090 an ounce, and silver soared over 6% to $82 an ounce, indicating an improvement in market risk appetite that may positively impact related industries.
See More
U.S. Stocks Mostly Higher, Nasdaq Up Over 1%
- Nasdaq Performance: The Nasdaq Composite rose by 1.15% to 23,295.01 on Monday, indicating strong performance in technology stocks and reflecting increased investor confidence in the tech sector.
- Dow Jones Decline: The Dow Jones Industrial Average fell slightly by 0.07% to 50,078.58, suggesting a relative weakness in traditional sectors, which may affect overall market sentiment.
- Sally Beauty Earnings Beat: Sally Beauty Holdings Inc (NYSE:SBH) reported an adjusted EPS of 48 cents for Q1, surpassing market expectations of 46 cents, with quarterly sales of $943.168 million exceeding the anticipated $940.150 million, demonstrating the company's resilience in a competitive market.
- Commodity Market Movements: On Monday, oil prices increased by 0.8% to $64.05, gold rose by 2.2% to $5,088.80, and silver surged by 7.9% to $82.94, reflecting heightened demand for safe-haven assets, which could influence future investment strategies.
See More
Kyndryl Shares Plunge 55% Amid Audit Review and Executive Departures
- Kyndryl Stock Plunge: Kyndryl Holdings' shares tumbled 55% following the disclosure of an audit committee review of cash management practices, which not only undermines investor confidence but may also pose greater challenges for future financing and operations.
- Executive Departures Impact: The immediate departure of CFO David Wyshner and General Counsel Edward Sebold indicates potential internal management issues, which could exacerbate market concerns regarding the company's governance structure.
- Cleveland-Cliffs Poor Performance: Cleveland-Cliffs reported a wider-than-expected adjusted EBITDA loss of $21 million, primarily due to weakness in the auto and Canadian markets; although the company anticipates improvements by 2026, it still faces short-term market challenges.
- Valaris Acquisition News: Valaris shares surged 28% after agreeing to be acquired by Transocean for $5.8 billion, with Valaris shareholders set to receive 15.235 shares of Transocean stock for each Valaris share held, reflecting strong demand in the offshore drilling services market.
See More
Valaris Shares Surge 21.8% Amid Transocean Acquisition Deal
- Significant Price Surge: Valaris shares jumped 21.8% to $76.02 on Monday, reflecting strong market confidence in the company's upcoming acquisition by Transocean, indicating a positive investor sentiment towards the deal.
- Clear Transaction Terms: Under the terms of the all-stock transaction, Valaris shareholders will receive 15.235 shares of Transocean stock for each Valaris share, which may attract more investor interest in Valaris's future performance.
- Mixed Market Performance: U.S. stocks were mixed on Monday, with the Nasdaq gaining around 100 points, showcasing strong performance in tech stocks amidst volatility in other sectors, reflecting the complexity of market sentiment.
- Investor Focus: The acquisition news surrounding Valaris has sparked widespread market attention, potentially influencing the stock prices of other related companies, prompting investors to closely monitor subsequent market reactions and industry developments.
See More
Nexstar to Acquire Tegna for $3.54 Billion Amid Regulatory Review
- Acquisition Overview: Nexstar has agreed to acquire Tegna for $3.54 billion, with plans to close the deal in the second half of 2026, contingent upon regulatory approval to bypass the statutory ownership cap.
- Positive Market Reaction: Following President Trump's public endorsement of the merger, Nexstar's shares rose over 0.5%, while Tegna's shares jumped nearly 5% in early premarket trading, indicating bullish market sentiment towards the deal.
- Competitive Landscape Shift: This acquisition will position Nexstar as the largest regional TV station operator in the U.S., controlling over 200 stations compared to Tegna's 64, which is expected to enhance competitive dynamics in the media sector.
- Trump's Position Shift: Trump, who previously opposed relaxing the FCC's ownership cap, has now expressed support for the deal, suggesting that “good deals” will foster competition and alter the media landscape, although the reasons for his change in stance remain unclear.
See More
Trump Endorses Nexstar's $6.2 Billion Tegna Acquisition
- Trump's Stance Reversal: Trump endorsed Nexstar's $6.2 billion acquisition of Tegna on social media, reversing his November opposition, stating that the deal would enhance competition and help combat fake news, highlighting his concern over media competition dynamics.
- Transaction Scale and Impact: Following the acquisition, Nexstar will own over 200 stations, reaching approximately 80% of U.S. households, with the deal expected to close in the second half of 2026, further solidifying Nexstar's leadership in the broadcast news sector.
- Regulatory Challenges: The deal requires approval from the Federal Communications Commission to lift the 39% household reach cap, reflecting the critical impact of regulatory policies on the success of media industry consolidations.
- Financial Metrics Overview: Nexstar has a market capitalization of $6.71 billion, with a 52-week high of $223.43 and a low of $141.66; Tegna's market cap stands at $3.07 billion, with a 52-week high of $21.35 and a low of $14.87, indicating differing market performances and potentials for both companies.
See More
