IRVING, Texas - Nexstar Media Group, Inc. (NASDAQ: NASDAQ:NXST) reported record third quarter revenue on Thursday, sending shares up 3% in premarket trading despite a slight earnings miss.
The television broadcasting company posted revenue of $1.37 billion for the quarter, in line with analyst estimates and up 20.7% year-over-year. Net income surged to $180 million, compared to just $8 million in the same period last year.
Adjusted earnings per share came in at $5.27, slightly below the $5.41 expected by analysts. However, investors focused on the strong top-line growth and improved profitability.
"Nexstar generated record financial results for the third quarter, reflecting the continued power of our broadcast television business model," said Perry A. Sook, Founder, Chairman and CEO.
Distribution revenue, which makes up over half of total revenue, grew 20.2% to $719 million. Advertising revenue increased 22.2% to $622 million, boosted by $154 million in political advertising ahead of the 2024 elections.
The company also made progress on its strategy for The CW network, reducing operating losses by $36 million year-over-year.
Nexstar returned $233 million to shareholders through dividends and share repurchases in the quarter, reducing shares outstanding by 3.1%.
Looking ahead, management expressed confidence in the company's positioning heading into an election year, which typically brings increased political advertising spending.
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