Benchmark lowers Sinclair Broadcast Group PT to $27 from $29.

Benchmark lowers Sinclair Broadcast Group PT to $27 from $29.

Sinclair Broadcast Group (SBGI) has seen its Price Target (PT) lowered by a major financial benchmark to $27 from the previous $29. The move follows the company's recent earnings report for the second quarter of 2025, which showed a 5.4% year-on-year decline in revenue to $784 million, missing analyst estimates by $15.56 million [1].

Sinclair's GAAP earnings per share (EPS) of -$0.91 also fell short of analyst expectations by $0.13 per share. The company's adjusted EBITDA decreased by 35% to $103 million, compared to $158 million in the prior year period [1]. These results have raised concerns about the company's financial health and its ability to meet future growth targets.

The benchmark's decision to lower the PT reflects the market's concerns over Sinclair's recent performance. The company's revenue guidance for the third quarter of 2025 is $764 million, which is below analyst estimates of $792.2 million. Similarly, the EBITDA guidance for Q3 CY2025 is $82 million, under analyst estimates of $112.7 million [2].

Sinclair's operating margin contracted to 2.7% in Q2, down from 7.7% in the same quarter last year, indicating that the company's expenses have increased relative to its revenue. Additionally, the company's EPS has declined by 28% annually over the last five years, more than its revenue, suggesting that the company has struggled with profitability [2].

Despite these challenges, Sinclair has maintained its dividend policy, declaring a $0.25 per share quarterly dividend, in line with previous periods. The forward yield currently stands at 7.08% [3].

Investors should closely monitor Sinclair's upcoming earnings reports and any changes in its business strategy to assess the potential impact on its stock price. The company's ability to navigate the current market conditions and improve its financial performance will be crucial for regaining investor confidence.

References:
[1] https://seekingalpha.com/news/4480537-sinclair-broadcast-gaap-eps-of-091-beats-by-169-revenue-of-784m-misses-by-1556m
[2] http://business.inyoregister.com/inyoregister/article/stockstory-2025-8-6-sinclair-nasdaqsbgi-reports-sales-below-analyst-estimates-in-q2-earnings-stock-drops
[3] https://seekingalpha.com/news/4480622-sinclair-broadcast-declares-0_25-dividend