Financial Performance - Total revenue for the fourth quarter of 2024 was $1.0 billion, an increase of 21% from the fourth quarter of 2023[8] - Total revenue for the three months ended December 31, 2024, was $1,045 million, representing a 21% increase compared to $864 million in the same period of 2023[20] - Net income attributable to common stockholders was $156 million in the fourth quarter of 2024, compared to a net loss of $22 million in the fourth quarter of 2023[8] - Net income for the year ended December 31, 2024, was $375 million, a significant recovery from a net loss of $76 million in 2023[20] - Adjusted EBITDA was $402 million in the fourth quarter of 2024, an increase of 86% from the fourth quarter of 2023[8] - Adjusted EBITDA for the year ended December 31, 2024, was $1,162 million, up 42% from $816 million in 2023[20] - Core advertising revenue decreased by 8% to $380 million in Q4 2024 from $415 million in Q4 2023[20] - Total broadcasting revenue for the year increased by 11% to $3,539 million from $3,195 million in 2023[20] Advertising Revenue - Political advertising revenue in the fourth quarter of 2024 was $250 million, an increase of 658% from the fourth quarter of 2023[8] - Political advertising revenue surged to $250 million, a 658% increase compared to $33 million in Q4 2023[20] Debt and Leverage - The company reduced the outstanding principal amount of its debt by $520 million during 2024[3] - Long-term debt decreased to $5,621 million as of December 31, 2024, from $6,160 million in 2023[23] - The company’s total outstanding principal debt as of December 31, 2024, was $5,690 million, with a leverage ratio of 5.49, below the maximum permitted incurrence of 7.00 to 1.00[40] - As of December 31, 2024, the First Lien Leverage Ratio was 2.97 to 1.00 and the overall Leverage Ratio was 5.49 to 1.00[8] - Gray Media's borrowing availability under its Revolving Credit Facility increased to $674 million from $494 million[26] - The company incurred $485 million in interest expense for the year ended December 31, 2024, up from $440 million in 2023[38] Operating Expenses and Cash Flow - Operating expenses for the year were $2,793 million, a decrease from $2,898 million in 2023[20] - Cash provided by operating activities for the year was $751 million, compared to $648 million in 2023[23] Future Expectations - Core advertising revenue is expected to decline approximately 7% to 8% in the first quarter of 2025 compared to the first quarter of 2024[12] - The company anticipates achieving or exceeding an annual run-rate of $60 million in cost containment measures during the current quarter[13] - The company has a current authorization to repurchase up to $250 million of additional debt in the open market[14] - The company expects to receive approximately $35 million from agreements related to third-party leases for space at Gray-owned tower sites[7] Other Financial Metrics - The impairment of investments for the three months ended December 31, 2024, was $25 million, compared to $21 million in the same period of 2023[37] - Gray Media's depreciation expense for the year ended December 31, 2024, was $144 million, slightly down from $145 million in 2023[38] - The company reported a loss on disposal of assets of $20 million for the year ended December 31, 2024, compared to a loss of $21 million in 2023[38] - Common stock dividends for the year ended December 31, 2024, were $32 million, an increase from $30 million in 2023[38] Conference Call - Gray Media plans to host a conference call on February 27, 2025, to discuss its fourth quarter operating results[27]

Financial Performance - Gray Media reported quarterly earnings of $1.59 per share, matching the Zacks Consensus Estimate, compared to a loss of $0.24 per share a year ago [1] - The company posted revenues of $1.05 billion for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 0.19%, and up from $864 million in the previous year [2] - Over the last four quarters, Gray Media has surpassed consensus revenue estimates two times [2] Stock Performance - Gray Media shares have increased approximately 22.9% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.3% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for it to outperform the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.30 on revenues of $795 million, and -$0.28 on revenues of $3.23 billion for the current fiscal year [7] - The estimate revisions trend for Gray Media is favorable ahead of the earnings release, which may influence future stock movements [6][5] Industry Context - The Broadcast Radio and Television industry, to which Gray Media belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a positive outlook for the sector [8]

Core Insights - Gray Media, Inc. reported financial results for Q4 2024, with total revenue reaching $1.0 billion, a 21% increase from Q4 2023, and political advertising revenue soaring by 658% to $250 million [7][19] - The company achieved a net income of $156 million in Q4 2024, a significant turnaround from a net loss of $22 million in Q4 2023 [7][18] - For the full year 2024, Gray Media generated $497 million in political advertising revenue, the highest among peers, and reduced outstanding debt by $520 million [1][19] Financial Performance - Total operating expenses for Q4 2024 were $648 million, 2% below the low end of guidance [1] - Adjusted EBITDA for Q4 2024 was $402 million, an 86% increase from Q4 2023, primarily driven by political advertising revenue [7][18] - The company ended 2024 with a First Lien Leverage Ratio of 2.97 to 1.00 and a total Leverage Ratio of 5.49 to 1.00 [7][34] Strategic Developments - Gray Media enhanced local content offerings, optimized cost structure, and strengthened its balance sheet throughout 2024 [2] - In December 2024, the company entered agreements to receive approximately $35 million for leasing rights at its tower sites, retaining ownership and control of the sites [5] - Cost containment measures are expected to achieve or exceed an annual run-rate of $60 million during Q1 2025 [10] Future Guidance - For Q1 2025, core advertising revenue is anticipated to decline by approximately 7% to 8% compared to Q1 2024, influenced by the Super Bowl airing on different channels [9] - The company expects to see strong double-digit growth in digital advertising revenue and from local customers who have not previously purchased advertising [9] - Guidance for total revenue in Q1 2025 is projected to be between $764 million and $775 million [12]

Core Viewpoint - Gray Media (GTN) is anticipated to report a significant year-over-year increase in earnings and revenues for the quarter ended December 2024, with earnings per share (EPS) expected to be $1.59, reflecting a 762.5% increase, and revenues projected at $1.04 billion, a 20.7% rise from the previous year [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for February 27, and the stock may experience upward movement if the reported figures exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised 11.77% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, which complicates the prediction of an earnings beat [10][11]. - Despite the Earnings ESP being neutral, the stock holds a Zacks Rank of 2, indicating a potential for positive performance [11]. Historical Performance - In the last reported quarter, Gray Media was expected to post earnings of $0.94 per share but delivered only $0.86, resulting in a surprise of -8.51% [12]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [13]. Conclusion - While Gray Media does not currently appear to be a strong candidate for an earnings beat, investors should consider other influencing factors when making decisions regarding the stock ahead of the earnings release [16].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Gray Media Inc. (GTN) as a potentially undervalued stock based on various financial metrics [2][4][6] Company Analysis - Gray Media Inc. (GTN) currently holds a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4] - The stock is trading at a P/E ratio of 28.08, which is lower than the industry average P/E of 30.07, suggesting it may be undervalued [4] - GTN's Forward P/E has fluctuated between a high of 54.90 and a low of -64.84 over the past year, with a median of 2.29, indicating volatility in earnings expectations [4] - The P/S ratio for GTN is 0.11, significantly lower than the industry average P/S of 0.3, reinforcing the notion of undervaluation [5] Investment Outlook - The combination of GTN's favorable Zacks Rank, strong value metrics, and positive earnings outlook positions it as a compelling investment opportunity for value investors [3][6]

Group 1 - Gray Media has appointed Blake Sebo as the General Manager of KTUU and KYES, its NBC and CBS affiliates in Anchorage, Alaska [1] - Blake Sebo has nearly twenty years of experience in the broadcast television industry, previously serving as a Sales Manager at KHBS/KHOG-TV and as Marketing and Research Director at KFSM-TV [2] - Gray Media is the largest owner of top-rated local television stations in the U.S., reaching approximately 37 percent of U.S. television households [4] Group 2 - Gray Media's portfolio includes 78 markets with the top-rated television station and 99 markets with the first and/or second highest rated television station during 2024 [4] - The company also owns Gray Digital Media, which provides digital marketing strategies and services [4] - Gray Media has additional media properties including video production companies and studio production facilities [4]

Partnership Renewal - The Atlanta Dream and Gray Media have renewed their partnership for the 2025 WNBA season, allowing fans to watch Dream games from home [1][2] - The 2025 Dream season will begin on May 16 against the Washington Mystics [1] Market Demand and Growth - Demand for the Atlanta Dream is at an all-time high, with a full-season 20 game sellout last season and broadcast numbers increasing tenfold from previous seasons [2] - The partnership with Gray Media has been crucial for increasing visibility and support in the market [2] Broadcast Availability - All non-national exclusive Dream games will be available on Peachtree TV's free over-the-air broadcasts and major cable and satellite systems including Xfinity, Spectrum, DirecTV, and DISH Network [2] - Peachtree Sports Network will also simulcast these games and additional Dream-related programming across various Georgia cities [2][3] Gray Media's Sports Investments - Gray Media has made significant sports investments in Atlanta, partnering with various local sports teams including the Atlanta Braves (MLB) and Atlanta Hawks (NBA) [3] - Gray Media also has national broadcast partnerships with WNBA teams such as the Las Vegas Aces and Phoenix Mercury, as well as several NBA teams [3] Atlanta Dream Overview - Established in 2008, the Atlanta Dream is the only WNBA franchise in the Southeast, playing home games at the Gateway Center Arena [4] - The team has produced 11 WNBA All-Stars, achieved three first-place regular-season finishes, and made three WNBA finals appearances [4] Gray Media Overview - Gray Media, Inc. is the largest owner of local television stations in the U.S., reaching approximately 36% of U.S. television households [5] - The company also owns Gray Digital Media, providing advanced digital marketing strategies and services [5]

Core Viewpoint - Gray Media (GTN) has shown significant stock performance recently, outperforming the S&P 500 and the broader broadcast radio and television industry, raising questions about its near-term prospects [2]. Earnings Estimate Revisions - For the current quarter, Gray Media is expected to report earnings of $1.59 per share, reflecting a substantial increase of +762.5% year-over-year, with a recent consensus estimate increase of +11.8% [5]. - The consensus earnings estimate for the current fiscal year stands at $3.32, indicating a change of +338.9% from the previous year, with a +33.3% increase in estimates over the last month [5]. - For the next fiscal year, the consensus estimate is -$0.28, showing a decline of -108.4% compared to the prior year, with a decrease of -33.3% in estimates over the past month [6]. Revenue Growth - The consensus sales estimate for the current quarter is $1.04 billion, representing a year-over-year increase of +20.7%. For the current and next fiscal years, the revenue estimates are $3.64 billion and $3.23 billion, indicating changes of +11% and -11.3%, respectively [9]. Last Reported Results and Surprise History - In the last reported quarter, Gray Media achieved revenues of $950 million, a year-over-year increase of +18.3%, with an EPS of $0.86 compared to -$0.57 a year ago [10]. - The reported revenues were slightly below the Zacks Consensus Estimate of $966 million, resulting in a revenue surprise of -1.66%, while the EPS surprise was -8.51% [11]. Valuation - Gray Media is graded A in the Zacks Value Style Score, indicating it is trading at a discount compared to its peers, suggesting potential undervaluation [15]. Conclusion - The analysis indicates that Gray Media may outperform the broader market in the near term, supported by its Zacks Rank 2 [16].

Core Insights - Gray Media will broadcast Super Bowl LIX using High Dynamic Range (HDR) technology across its NEXTGEN TV FOX affiliates, enhancing the viewing experience for audiences in eight markets [1] - The company has launched Dolby Vision and HDR10+ formats at its FOX affiliate in New Orleans and four other affiliates, expanding its HDR capabilities [2] - Gray Media introduced GameLoop, a new NEXTGEN TV free gaming channel, allowing users to play classic games on select NEXTGEN TVs, further enhancing viewer engagement [3][4] Company Overview - Gray Media, Inc. is the largest owner of top-rated local television stations in the U.S., serving 113 television markets and reaching approximately 36% of U.S. television households [4] - The company operates 77 markets with the top-rated television station and has the largest Telemundo Affiliate group, covering 43 markets with nearly 1.5 million Hispanic TV households [4] - Gray Media also includes Gray Digital Media, which provides advanced digital marketing strategies, and owns various media properties, including video production companies and studio facilities [4]

Gray Media (GTN) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a changing earnings ...