The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Gray Television beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share dropped to a loss.
Gross margins expanded, operating margins grew, net margins shrank.
Gray Television tallied revenue of $126.6 million. The two analysts polled by S&P Capital IQ anticipated net sales of $120.5 million on the same basis. GAAP reported sales were 50% higher than the prior-year quarter's $84.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.75. The three earnings estimates compiled by S&P Capital IQ predicted $0.42 per share. Non-GAAP EPS of $0.75 for Q4 were much higher than the prior-year quarter's $0.10 per share. GAAP EPS were -$0.05 for Q4 versus $0.10 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 55.2%, 1,400 basis points better than the prior-year quarter. Operating margin was 46.6%, 1,690 basis points better than the prior-year quarter. Net margin was -1.7%, 1,060 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $78.7 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $329.8 million. The average EPS estimate is $0.37.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 76 members out of 101 rating the stock outperform, and 25 members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Gray Television a green thumbs-up, and four give it a red thumbs-down.
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