November 2, 2011
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of TV broadcaster Sinclair Broadcast Group (Nasdaq: SBGI ) were turning up the volume today as they rose as much as 15% in intraday trading after the company reported strong third-quarter results.
So what: For the quarter, total revenue of $180.9 million was down from 2010, but above the $177.2 million that Wall Street analysts were expecting. Operating income for the quarter dropped 7%, but lower financing costs and income from investments helped push earnings per share up 33% to $0.24. Analysts were looking for $0.18 in per-share profit.
Now what: Sinclair also provided some hopeful news for the future. Near term, the company expects the fourth quarter to go well as it's seeing strong performance from auto and political ad spending. Looking longer term, the company also announced that it's spending $385 million to buy the broadcast assets of Freedom Communications, a deal that will give it eight stations in seven markets and provide a strong presence in the West Palm Beach, Fla., market.
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