Gray television (GTN – Free Report) came out with a quarterly loss of $ 0.32 per share against Zacks’ consensus estimate of $ 0.33. This compares to earnings of $ 1.14 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents a surprise earnings of -196.97%. A quarter ago, this broadcaster was expected to post a profit of $ 0.32 per share when it actually produced a profit of $ 0.27, delivering a surprise of -15.63 %.
In the past four quarters, the company has twice beaten consensus EPS estimates.
Gray Television, which is owned by Zacks’ broadcast radio and television industry, reported revenue of $ 601 million for the quarter ended September 2021, beating the consensus estimate of Zacks by 0.81%. Zacks. This compares to a year ago revenue of $ 604 million. The company has exceeded consensus revenue estimates four times in the past four quarters.
The sustainability of the immediate stock price movement based on recently released numbers and future earnings expectations will depend primarily on management feedback on the profit call.
Shares of Gray Television have risen about 41% year-to-date compared to a 24.1% gain for the S&P 500.
What’s next for gray television?
While Gray Television has outperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the title?
There are no easy answers to this key question, but one reliable metric that can help investors solve this problem is the company’s earnings outlook. This includes not only the current consensus earnings expectations for the coming quarter (s), but also how those expectations have changed in recent times.
Empirical research shows a strong correlation between short-term stock market movements and trends in earnings estimate revisions. Investors can follow these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Prior to this release of results, the trend in estimate revisions for Gray Television was mixed. While the magnitude and direction of estimate revisions may change as a result of the company’s just-released earnings report, the current status translates to a Zacks (Hold) rank 3 for the stock. Thus, stocks are expected to move in line with the market in the near future. You can see the full list of Zacks # 1 Rank (Strong Buy) stocks today here.
It will be interesting to see how the estimates for the next quarters and the current year evolve in the days to come. The current consensus estimate of EPS is $ 0.60 out of $ 646.25 million in revenue for the coming quarter and $ 1.47 out of $ 2.33 billion in revenue for the current year.
Investors should be aware that the outlook for the sector can also have a significant impact on the performance of the stock. In terms of Zacks ‘industry rankings, broadcast radio and television currently rank in the lowest 39% of Zacks’ 250+ industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.