Market Overview - U.S. rate futures indicate a 55.4% chance of no rate change and a 44.6% chance of a 25 basis point cut at the next FOMC meeting in December [1] - Wall Street's major equity averages ended mixed, with semiconductor stocks generally declining, while DoorDash saw a significant increase of over +6% after a positive analyst rating [4] - The Euro Stoxx 50 Index fell -0.42% as investors adopted a cautious stance ahead of Nvidia's earnings and U.S. economic data releases [12] Company Earnings and Reports - Nvidia, referred to as "the most important stock on Earth" by Goldman Sachs, is set to report quarterly earnings, with high expectations following its previous revenue growth forecast [7] - Other notable companies releasing earnings this week include Walmart, Home Depot, and Target, alongside tech firms like Palo Alto Networks and Intuit [7] - The construction spending report for August is expected to show a -0.2% month-over-month change, while the Empire State Manufacturing Index is anticipated to come in at 6.10 for November [10][11] Economic Data and Fed Insights - The Bureau of Labor Statistics will publish the September jobs report, and the Census Bureau will release various economic reports, including construction spending and factory orders [8] - Fed officials have expressed skepticism about the need for another rate cut next month, citing ongoing inflation concerns [9] - The Fed's minutes from the October meeting will be released, providing insights into the central bank's stance on interest rates [9] International Developments - In Japan, the Nikkei 225 Index closed slightly lower amid deteriorating relations with China, which has implications for tourism and retail sectors [15] - Japan's GDP contracted in the third quarter, leading to discussions of a stimulus package exceeding 17 trillion yen ($110 billion) [16] - Italy's annual inflation rate eased to 1.2% in October, while the European Union raised its economic growth estimate for the year to 1.3% [12]

Core Insights - E.W. Scripps met Wall Street's revenue expectations in Q3 CY2025, reporting sales of $525.9 million, an 18.6% year-on-year decline, and a GAAP loss of $0.55 per share, which was 72.1% below analysts' consensus estimates [1][6] Financial Performance - Revenue: $525.9 million vs analyst estimates of $523.9 million (18.6% year-on-year decline, in line) [6] - EPS (GAAP): -$0.55 vs analyst expectations of -$0.32 (72.1% miss) [6] - Adjusted EBITDA: $80.43 million vs analyst estimates of $68.75 million (15.3% margin, 17% beat) [6] - Operating Margin: 7.2%, down from 18.8% in the same quarter last year [6] - Market Capitalization: $224.5 million [6] Strategic Initiatives - The company highlighted the success of its Scripps Sports strategy and expansion into connected TV (CTV) advertising, with a focus on women's sports partnerships contributing to performance [3][4] - Management expects continued revenue growth from sports broadcasting deals and CTV expansion while maintaining a disciplined approach to expenses [4] - The company is preparing for significant political advertising tailwinds in 2026 and ongoing margin improvements through operational efficiencies and technology investments [4] Advertising and Revenue Growth - The intensified focus on women's sports, including partnerships with the WNBA and National Women's Soccer League, led to strong advertising demand and increased core revenue [7] - Scripps' expansion into Connected TV generated significant growth, with streaming now accounting for 20% of Scripps Networks viewing, and management projecting double-digit CTV revenue growth [7] Operational Efficiency - Recent station swaps and sales generated $123 million in cash, intended for debt reduction and balance sheet improvement [7] - Operational efficiency initiatives, including reductions in employee-related costs and restructuring, contributed to margin stabilization despite advertising softness [7] Technology and Innovation - Early investments in automation and artificial intelligence are beginning to deliver value, helping newsroom and sales teams operate more efficiently [8]

Core Insights - Gray Media, Inc. reported strong financial results for Q3 2025, with total revenue of $749 million, exceeding the high end of guidance [4][12] - Core advertising revenue reached $355 million, reflecting solid performance despite a comparison to the previous year's Olympic-related revenue [4][14] - The company successfully executed debt market transactions to enhance liquidity and extend debt maturities, increasing financial flexibility [4][6] Financial Performance - Total revenue for Q3 2025 was $749 million, aligning with the high end of guidance [4] - Core advertising revenue was $355 million, slightly down from $365 million in Q3 2024, but at the high end of guidance [14] - Retransmission consent revenue was $346 million, exceeding guidance by $1 million, though down from $369 million in Q3 2024 [4][14] - Political advertising revenue was $8 million, exceeding guidance by $1 million, but significantly lower than $173 million in Q3 2024 [4][14] - Net loss attributable to common stockholders was $23 million, compared to a net income of $83 million in Q3 2024, primarily due to decreased political advertising [4][14] Operational Highlights - Broadcast operating expenses were $542 million, significantly below guidance, reflecting ongoing cost containment efforts [4][14] - The transition of WANF in Atlanta to an independent station is expected to enhance local news and sports programming [4][14] - The company is pursuing acquisitions and divestitures to expand its market presence, with agreements involving several television stations [6][7] Debt and Liquidity Management - The company amended its Senior Credit Agreement to increase the Revolving Credit Facility by $50 million, extending the term to December 2028 [4][9] - Gray Media issued $900 million in Senior Secured Second Lien Notes and $775 million in Senior Secured First Lien Notes to refinance existing debt [4][9] - As of September 30, 2025, the company had $742 million available under its Revolving Credit Facility [9][18] Future Guidance - For Q4 2025, the company anticipates a decrease in retransmission consent revenue compared to the prior year, primarily due to WANF's transition [12] - Guidance for core advertising revenue is projected between $380 million and $390 million for Q4 2025 [12] - Total revenue guidance for the year ending December 31, 2025, is set between $3,070 million and $3,085 million [12]

Core Advertising Revenue - Local Media division core advertising revenue increased by 2% in Q3, driven by services category and national advertising growth due to strong sales execution and Scripps' sports strategy [1] - The company anticipates strong core revenue growth in Q4, supported by a new agreement with the NHL's Tampa Bay Lightning and growth in live sports markets [1] Financial Performance - E.W. Scripps reported a revenue decline of 18.6% year-on-year to $525.9 million in Q3, meeting Wall Street's expectations [2][6] - Free Cash Flow was -$15.07 million, down from $127.4 million in the same quarter last year [2] - Operating margin decreased to 7.2%, down from 18.8% in the same quarter last year [2][9] Revenue Growth and Projections - Over the last five years, E.W. Scripps experienced a sluggish sales growth rate of 6.5% compounded annually, which is below the standard for the consumer discretionary sector [4] - Analysts project a further revenue decline of 1.5% over the next 12 months, indicating a lack of excitement regarding the company's newer products and services [6] Cost Management and Profitability - The Scripps Networks division achieved a 27% margin, aided by a 7% reduction in expenses [1] - Despite a higher efficiency reflected in the operating margin averaging 7.5% over the last two years, the company still faces challenges with profitability [8] Strategic Moves - Scripps announced the sale of two network-affiliated stations for total proceeds of $123 million, aligning with its strategy to optimize its portfolio and improve local station performance [1] - The company successfully closed on the placement of $750 million in new senior secured second-lien notes, which were used to pay off existing debt [1]

Group 1 - E.W. Scripps shares increased by 5.7% after forming an exclusive broadcast partnership with Major League Volleyball for the 2026 championship on its ION network [1] - The partnership includes live broadcasts of MLV's two semifinal matches and the championship match, enhancing Scripps Sports' portfolio of women's sports [1] - The move aims to strengthen ION's programming with live sports content to attract dedicated and advertiser-friendly viewers [1] Group 2 - Following the initial share increase, E.W. Scripps shares cooled down to $2.15, reflecting a 1.8% rise from the previous close [2] - E.W. Scripps shares have shown extreme volatility, with 79 moves greater than 5% over the last year, indicating that the market views the recent news as significant but not fundamentally altering its perception of the company [3] - The stock is down 14.8% since the beginning of the year and is trading 48.3% below its 52-week high of $4.15 from July 2025 [5]

Core Insights - Perimeter Solutions, S.A. (NYSE:PRM) specializes in fire safety and oil additives, operating in a competitive landscape with peers like Montrose Environmental Group, Inc. (MEG) and The E.W. Scripps Company (SSP) [1] - The analysis of Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC) is crucial for understanding the efficiency of these companies in generating returns [1] Financial Performance - Perimeter Solutions has a ROIC of 3.78% and a WACC of 11.30%, resulting in a ROIC to WACC ratio of 0.33, indicating inefficiency in generating returns [2][5] - Montrose Environmental Group has a negative ROIC of -2.82% and a WACC of 10.47%, leading to a ROIC to WACC ratio of -0.27, which is less efficient than Perimeter Solutions [2] - The E.W. Scripps Company stands out with a ROIC of 5.78% and a WACC of 6.50%, resulting in a ROIC to WACC ratio of 0.89, indicating the highest efficiency among peers [3][5] - Scholastic Corporation has a ROIC of 1.74% and a WACC of 7.77%, with a ROIC to WACC ratio of 0.22, which is lower than that of Perimeter Solutions [3] - Lee Enterprises, Incorporated, and Unifi, Inc. both exhibit negative ROICs of -2.95% and -11.80%, respectively, with WACCs of 4.50% and 6.78%, resulting in ROIC to WACC ratios of -0.66 and -1.74, indicating significant inefficiencies [4][5]

Core Viewpoint - The E.W. Scripps Company has agreed to sell its local ABC-affiliated station WRTV in Indianapolis to Circle City Broadcasting for $83 million, aiming to reduce debt and enhance the durability of its local station portfolio [1][3]. Company Overview - The E.W. Scripps Company is a diversified media entity and one of the largest local TV broadcasters in the U.S., operating over 60 stations across more than 40 markets [6][7]. - Scripps also manages national news outlets such as Scripps News and Court TV, along with entertainment brands like ION, Bounce, and Grit [6][7]. Transaction Details - Circle City Broadcasting, led by DuJuan McCoy, currently operates two television properties in Indianapolis and aims to expand its service to local communities through this acquisition [2][3]. - The transaction is subject to regulatory and customary approvals before closing [2]. Strategic Context - This sale follows other strategic moves by Scripps, including the planned sale of WFTX in Ft. Myers/Naples to Sun Broadcasting and a station swap with Gray Media, indicating a broader strategy to optimize its local station portfolio [4].

Core Insights - The E.W. Scripps Company has expanded its streaming offerings by making six national channels available on Peacock, enhancing its content reach and viewer engagement [1][4]. Company Overview - The E.W. Scripps Company (NASDAQ: SSP) is a diversified media company with a focus on local journalism and operates over 60 stations across more than 40 markets in the U.S. [3] - Scripps is recognized as the largest holder of broadcast spectrum in the nation and serves various audiences through its national news outlets and entertainment brands [3][5]. Streaming Service Details - Peacock, owned by NBCUniversal, provides a wide array of content including current NBC and Bravo series, exclusive Originals, and live sports events, positioning itself as a comprehensive entertainment platform [4]. - The addition of Scripps' channels to Peacock includes ION, ION Mystery, Bounce, Court TV, Court TV Legendary Trials, and Scripps News, which cater to diverse viewer interests [1][2]. Channel Programming Highlights - ION features a broad programming lineup including women's sports and popular off-network series [5]. - ION Mystery offers binge-worthy dramas and docuseries, while Court TV focuses on live coverage and analysis of significant trials [5]. - Bounce targets African American audiences with a mix of original series, movies, and specials [5]. - Scripps News emphasizes objective reporting and in-depth storytelling [5].

Core Insights - Fox (FOXA) reported quarterly earnings of $1.27 per share, exceeding the Zacks Consensus Estimate of $1.01 per share, and showing an increase from $0.90 per share a year ago, resulting in an earnings surprise of +25.74% [1] - The company achieved revenues of $3.29 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.80% and up from $3.09 billion year-over-year [2] - Fox has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise for the previous quarter was +18.28%, with actual earnings of $1.10 per share compared to an expected $0.93 per share [1] - The company has surpassed consensus EPS estimates four times in the last four quarters [2] Stock Performance - Fox shares have increased approximately 17.3% since the beginning of the year, outperforming the S&P 500's gain of 7.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.54 on revenues of $3.6 billion, and for the current fiscal year, it is $4.30 on revenues of $15.78 billion [7] - The outlook for the industry, particularly the Broadcast Radio and Television sector, is favorable, ranking in the top 41% of Zacks industries, which historically outperforms the bottom 50% by more than 2 to 1 [8] Industry Context - E.W. Scripps (SSP), another company in the same industry, is expected to report a quarterly loss of $0.04 per share, reflecting a year-over-year change of +73.3% [9] - Scripps' anticipated revenues are projected to be $546.65 million, down 4.7% from the previous year [10]

Core Insights - E.W. Scripps Company (SSP) is set to report its second-quarter 2025 results on August 7, with expected revenues of $546.65 million, reflecting a 4.70% year-over-year decline. The earnings consensus indicates a loss of 4 cents per share, an improvement from a loss of 15 cents per share in the same quarter last year [1][9]. Revenue and Earnings Expectations - The Zacks Consensus Estimate for second-quarter 2025 revenues is $546.65 million, indicating a 4.70% decline compared to the previous year [1][9]. - The consensus for earnings is a loss of 4 cents per share, which is an improvement from the loss of 15 cents per share reported in the same quarter last year [1][9]. Segment Performance - The Networks segment is expected to show measurable gains due to the reintroduction of WNBA and National Women's Soccer League broadcasts on the ION network, supported by pre-sold advertising inventory and premium pricing [3]. - Scripps Networks is likely to maintain strong profitability, building on a 32% margin achieved in the first quarter, driven by cost reductions and increased connected-TV revenues [4]. - The Local Media segment is anticipated to face revenue pressure, with expected declines in the high single digits due to ongoing tariff-driven uncertainty, which may negatively impact profitability [6][9]. Financial Stability - E.W. Scripps is expected to benefit from refinancing actions taken in the previous quarter, which included extending debt maturities and reducing near-term refinancing risk, contributing to stronger operational stability [5].