Nexstar: Q3 Earnings Snapshot

Nexstar Media Group, Inc. (NASDAQ: NXST) reported record third quarter net revenue of $1.37 billion, up 20.7% year-over-year (YoY), driven by all-time high third quarter distribution and advertising revenue. Net income of $180 million, up 164.9% YoY, reflected the power of its broadcast television business model. The company's Adjusted EBITDA margin of 37.3% and Adjusted Free Cash Flow of $327 million highlighted its strong operating performance. Nexstar's Q3 results outperformed the industry average, demonstrating its resilience and growth potential.


Political advertising had a significant impact on Nexstar's Q3 financial performance, contributing to a 16% increase in all-time high third quarter political advertising revenue to $154 million, up from $132 million in the comparable 2020 period. This increase, along with record distribution and advertising revenue, drove Nexstar's Q3 net revenue to a record $1.37 billion, up 20.7% year-over-year.

Nexstar Media Group reported a record third quarter net revenue of $1.37 billion, driven by all-time high third quarter distribution and advertising revenue. Adjusted EBITDA for Q3 2024 was $510 million, up 82.8% from $279 million in Q3 2023. Adjusted EBITDA margin also increased significantly, from 24.6% in Q3 2023 to 37.3% in Q3 2024, reflecting the company's strong operating performance.


In Q3 2024, Nexstar Media Group returned $233 million to shareholders, reducing shares outstanding by 3.1%. This quarterly return of capital is a significant increase from the previous year, when Nexstar returned $173.6 million in Q3 2021. The increase in shareholder returns reflects Nexstar's strong financial performance and commitment to returning capital to investors.

Nexstar's investments in The CW Network and original content have significantly contributed to its revenue growth. In Q3 2024, Nexstar reported record third quarter net revenue of $1.37 billion, driven by all-time high third quarter distribution and advertising revenue. The CW Network's debuts of NASCAR Xfinity Series racing and WWE NXT wrestling on the broadcast network led to double-digit percentage increases in total audience and adults 18-49 viewership, further boosting advertising revenue. Additionally, Nexstar's expansion of original programming on NewsNation and the launch of Rewind TV to 50 million homes have diversified its revenue streams and attracted new advertising partners.

Nexstar's commitment to returning capital to shareholders has significantly impacted its stock performance and valuation. From Q3 2021 to Q3 2024, Nexstar allocated $1.7 billion to share repurchases and dividends, reducing shares outstanding by 3.1%. This strategy has enhanced earnings per share (EPS) growth, with EPS increasing from $3.54 in Q2 2024 to $5.40 expected in Q3 2024. Despite a slight miss in Q2 2024, Nexstar's share price has risen by 15.57% year-to-date, reflecting investors' confidence in the company's long-term prospects. Nexstar's average target price of $199.78 implies an upside of 15.57% from the current price, indicating that analysts expect the company's shareholder-friendly policies to continue driving value.

In conclusion, Nexstar Media Group's Q3 earnings snapshot showcases the company's strong financial performance, driven by record revenue growth and a robust broadcast television business model. With a commitment to returning capital to shareholders and investing in content and distribution, Nexstar is well-positioned to continue its growth trajectory and create value for investors.