Gray Television, Inc. (GTN, Financial) announced a net loss of $22 million attributable to its common stockholders for the first quarter of 2025. This marks a significant decline from the $75 million net income reported during the same period of the previous year, 2024.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Gray Media Inc (GTN, Financial) is $5.20 with a high estimate of $7.00 and a low estimate of $2.00. The average target implies an upside of 39.78% from the current price of $3.72. More detailed estimate data can be found on the Gray Media Inc (GTN) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Gray Media Inc's (GTN, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Gray Media Inc (GTN, Financial) in one year is $3.65, suggesting a downside of 1.88% from the current price of $3.72. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Gray Media Inc (GTN) Summary page.
GTN Key Business Developments
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Gray Media Inc (GTN, Financial) reported a 21% increase in total revenue for Q4 2024 compared to Q4 2023, reaching $1 billion.
- The company successfully reduced its principal amount of debt by $520 million in 2024, exceeding its goal of $500 million.
- Gray Media Inc (GTN) achieved an 86% increase in adjusted EBITDA for Q4 2024, driven primarily by political advertising revenue.
- The company has expanded its local sports offerings, including broadcasting Atlanta Braves games, which is expected to enhance viewership and profitability.
- Gray Media Inc (GTN) has made significant progress in its Assembly Studios, with new productions like 'Grosse Pointe Garden Society' and 'Beyond the Gates' contributing to its content portfolio.
Negative Points
- Core advertising revenue is expected to decline by 7-8% in Q1 2025 compared to Q1 2024, influenced by economic uncertainty and changes in Super Bowl broadcasting rights.
- The company faces challenges in the automobile advertising sector due to economic uncertainties and high interest rates affecting demand.
- Gray Media Inc (GTN) is dealing with a decline in traditional MVPD subscriber base, although there are signs of improvement.
- The company is operating under regulatory constraints that limit its competitive edge against tech giants in the advertising space.
- Despite debt reduction efforts, Gray Media Inc (GTN) still has a leverage ratio of 5.49 times, indicating a need for continued focus on debt management.
