Gray Television Expects Lower Q2 Revenue, Analysts See Modest Upside Potential

Gray Television (GTN) forecasts Q2 revenue between $769 million and $775 million, exceeding market expectations. Analysts predict a one-year price target average of $5.10, suggesting modest upside potential. However, GuruFocus estimates indicate a possible downside with a projected GF Value of $4.49.

Gray Television (GTN) has raised its second-quarter revenue forecast, projecting total revenue between $769 million and $775 million, surpassing market expectations of $765.2 million [1]. The multimedia company's improved outlook is driven primarily by political advertising revenue, which is projected to reach $47 million compared to $9 million a year earlier [2]. Core advertising revenue is forecast to be between $360 million and $362 million, up from the previous guidance of a mid-single-digit decline [1].

Additionally, Gray Media expects to record a non-cash impairment charge of approximately $29 million in the second quarter, related to its Atlanta station WANF. This charge stems from the station's transition from a CBS network affiliate to an independent station effective August 16 [2]. The company noted that this impairment is not expected to materially impact ongoing operations or liquidity.

Analysts predict a one-year price target average of $5.10, suggesting modest upside potential. However, GuruFocus estimates indicate a possible downside with a projected GF Value of $4.49 [1]. Gray Media's financial results for the first quarter of 2025 showed a narrower loss than anticipated, with earnings per share of -$0.23 and revenue reaching $782 million [2].

In recent developments, Gray Media repurchased $7.7 million of its outstanding 5.875% senior notes due 2026 and made amortization payments totaling $15 million on term loans [2]. The company also announced plans to offer up to $750 million in senior secured second lien notes, aiming to use the proceeds to redeem outstanding senior notes and repay part of its term loan [2].

Gray Media operates television stations in 113 markets, reaching approximately 37 percent of U.S. television households. The company owns the top-rated television station in 78 markets and the first or second highest-rated station in 99 markets [2].

References:
[1] https://seekingalpha.com/news/4465878-gray-media-guides-q2-revenue-above-estimates
[2] https://www.investing.com/news/company-news/gray-media-raises-q2-revenue-forecast-plans-29-million-impairment-charge-93CH-4126616