Like Sinclair a few days ago, Gray Television is telling Wall Street to expect its Q3 results to come in a bit better than it had previously indicated. Gray now expects revenues of $66-66.5 million, up from its previous guidance of $63-64 million.
Gray provided very little detail in its brief announcement, but Wells Fargo Securities analyst Marci Ryvicker noted that it appeared the improvement came primarily from political advertising. For Q3, political is now projected by Gray at $3-3.1 million, up sharply from the previous guidance of $500-600K.
Gray, we would note, has multiple stations in Virginia, which has a hotly contested race for governor under way.
With Sinclair and Gray both raising estimates, Ryvicker said other broadcasters may make similar announcements in coming weeks, which would further boost stock prices. Even so, she noted, “We still expect steep declines in TV’s top line given the substantial political that was generated during the presidential elections last year.”
RBR-TVBR observation: It’s a little early to go popping champagne corks, but good news is always welcome. Evidence grows that the advertising recession is easing.