Sinclair Stock Soars Despite Mixed Q1, Thanks To Fox


Sinclair Broadcast Group enjoyed a much-needed jolt on Wall Street today (5/9), as investors cheered the news that it is teaming with Tribune Media to sell six FOX affiliates and the CW affiliate in Miami-Fort Lauderdale to 21st Century Fox. 

The timing was perfect, as Sinclair’s Q1 results weren’t so terrific.

Shares soared 9.3%, to $29.85, to erase a dip seen by SBGI that started April 25.

Volume was 2.8 million shares; average trading volume for Sinclair is 1.38 million shares.

Investors seem nonplussed about Q1, and now likely believe regulatory approval of Sinclair’s purchase of Tribune Media will arrive very soon.

In Q1, net income fell to $43.1 million (42 cents per share), from $57.2 million (61 cents).

Earnings, adjusted for non-recurring costs, came to 46 cents per share.

That’s nowhere close to the average estimate of five analysts surveyed by Zacks Investment Research, which was for earnings of 73 cents per share.

But, here’s the good news: Sinclair beat the street with net revenue of $665.4 million, up 6% from Q1 2017.

Four analysts surveyed by Zacks expected $660.3 million.

Media revenue grew by 6% to $643.7 million, while political revenue clocked in at $7 million — up from $2 million as 2018 primary season dollars began to trickle in.