Local television broadcasting and media company Gray Television (NYSE: GTN) will be reporting results this Friday before market hours. Here’s what investors should know.
Gray Television beat analysts’ revenue expectations last quarter, reporting revenues of $839 million, up 8.7% year on year. It was an exceptional quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
Is Gray Television a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Gray Television’s revenue to grow 28% year on year, a reversal from the 21.2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Gray Television has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Gray Television’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. FOX delivered year-on-year revenue growth of 22.3%, beating analysts’ expectations by 6.5%, and Hilton Grand Vacations reported revenues up 50.8%, topping estimates by 39.5%. FOX traded up 6.1% following the results while Hilton Grand Vacations was also up 8.2%.
Read our full analysis of FOX’s results here and Hilton Grand Vacations’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 8% on average over the last month. Gray Television is up 3.1% during the same time and is heading into earnings with an average analyst price target of $6.50 (compared to the current share price of $4.80).
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