The 10-second takeaway
For the quarter ended March 31 (Q1), Gray Television beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. GAAP earnings per share contracted.
Margins dropped across the board.
Gray Television booked revenue of $78.2 million. The two analysts polled by S&P Capital IQ hoped for sales of $76.8 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.02. The three earnings estimates compiled by S&P Capital IQ predicted -$0.01 per share. GAAP EPS of $0.02 for Q1 were 50% lower than the prior-year quarter's $0.04 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.6%, 550 basis points worse than the prior-year quarter. Operating margin was 19.2%, 670 basis points worse than the prior-year quarter. Net margin was 1.1%, 310 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $85.7 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $338.7 million. The average EPS estimate is $0.37.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 80 members out of 109 rating the stock outperform, and 29 members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Gray Television a green thumbs-up, and four give it a red thumbs-down.
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