Sinclair Broadcast Group, Inc. (SBGI, Financial) has expanded its portfolio by acquiring the non-licensed assets of two television stations, WDKA-TV located in Paducah, Kentucky, and KBSI-TV in Cape Girardeau, Missouri. As part of the agreement, Sinclair also secured an option to purchase the licensed assets of these stations.
Under this deal, Sinclair will enhance the operations of WDKA and KBSI by providing a range of services including programming, technical support, and management resources. This acquisition is part of Sinclair's strategy to strengthen its presence in these regions while leveraging its expertise in broadcast management.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Sinclair Inc (SBGI, Financial) is $18.60 with a high estimate of $29.00 and a low estimate of $12.00. The average target implies an upside of 28.63% from the current price of $14.46. More detailed estimate data can be found on the Sinclair Inc (SBGI) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Sinclair Inc's (SBGI, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" 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 Sinclair Inc (SBGI, Financial) in one year is $14.18, suggesting a downside of 1.94% from the current price of $14.46. 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 Sinclair Inc (SBGI) Summary page.
SBGI Key Business Developments
Release Date: May 07, 2025
- Total Media Revenue: In line with expectations.
- Distribution Revenues: Increased by $15 million year-over-year, but $2 million below guidance.
- Adjusted EBITDA: Exceeded the high end of guidance range by approximately $9 million for local media.
- Core Advertising Revenue: Down 4.5% year-over-year.
- Net Retransmission Revenues: Grew by mid-single digits year-over-year.
- Venture's Cash Balance: $354 million at quarter end.
- First Lien Net Leverage: 1.8x as of March 31.
- Total Net Leverage: 5.8x as defined in the new STG credit agreement.
- Debt Repurchase: Approximately $66 million in face value of STG's 2027 notes repurchased for $62 million in early April.
- Tennis Channel Revenue Growth: Total revenues grew by 9% year-over-year.
- Cash Tax Payments: Forecasted to be $121 million for the year, $95 million lower than previous guidance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Sinclair Inc (SBGI, Financial) reported strong core advertising performance, believed to be among the best in the broadcast industry for the first quarter.
- Distribution revenues increased by $15 million year-over-year, despite subscriber churn moderating slightly.
- The Ventures portfolio received $10 million in cash distributions and invested $38 million, including a significant acquisition by Compulse.
- Sinclair Inc (SBGI) successfully completed a comprehensive refinancing of STG, extending the debt maturity profile to over 6 years.
- The company announced a new business unit partnership with ATP, WTA, and U.S. tournaments, securing Verizon as the first sponsor with exclusivity in the 5G wireless space.
Negative Points
- Distribution revenues came in $2 million below guidance due to slower-than-expected improvements in subscriber churn.
- Core advertising revenues were down 4.5% year-over-year, reflecting macroeconomic and tariff-related uncertainties.
- The company anticipates lower media revenues in the second quarter due to significantly lower political revenues and continued softness in core advertising categories.
- Visibility on core advertising revenue is reduced, with several key advertisers pulling their financial guidance due to economic uncertainties.
- Despite refinancing, Sinclair Inc (SBGI) faces challenges with a total net leverage of 5.8x, indicating a high level of debt.
