IRVING, Texas - Nexstar Media Group, Inc. (NASDAQ: NASDAQ:NXST) today announced a robust start to 2024 with record first-quarter net revenues and earnings per share (EPS) that surpassed analyst expectations. NXST shares were up 0.5% after the release.
The company reported a first-quarter EPS of $5.16, significantly higher than the consensus estimate of $3.96. However, revenue for the quarter slightly missed the analyst projection, coming in at $1.28 billion compared to the expected $1.29 billion.
Nexstar's first-quarter performance showcased an impressive year-over-year (YoY) growth with net revenue increasing by 2.1% from $1.257 billion in the same quarter last year. The company's net income saw a substantial rise of 89.8% to $167 million, up from $88 million, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 9.3% to $542 million. Adjusted free cash flow also experienced a healthy increase of 6.9%, reaching $403 million.
Perry A. Sook, Nexstar's Founder, Chairman, and CEO, expressed confidence in the company's trajectory, attributing the strong quarter to the highest first-quarter net revenues in Nexstar's history and a significant reduction in operating losses at The CW network. Sook highlighted the company's strategic progress and the expected momentum from the upcoming presidential election cycle's political spending.
The company's distribution revenue reached an all-time quarterly high of $761 million, marking a 4.5% increase over the previous year. This growth was primarily driven by favorable distribution contract renewals in 2023, annual rate escalators, and the return of partner stations on one MVPD in January. Despite a challenging advertising market, Nexstar managed to mitigate the impact with a $31 million increase in election-year political advertising revenue.
Nexstar's strategic business moves included a 25% increase in its quarterly cash dividend, the separation of the Chairperson and CEO roles, and multi-year agreements with Comscore and Nielsen for audience measurement. The company also boasted consecutive quarters of primetime ratings growth at The CW and announced that the NASCAR Xfinity series races would air exclusively on The CW starting in September 2024.
The company's capital allocation strategy in the first quarter involved repaying $30 million of debt, paying $57 million in dividends, and repurchasing shares, which resulted in a 1.7% reduction in shares outstanding.
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