Gray Media (NYSE:GTN – Get Free Report) announced its quarterly earnings data on Friday. The company reported $0.66 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.86 by ($0.20), FiscalAI reports. Gray Media had a negative net margin of 0.83% and a negative return on equity of 1.12%. The business had revenue of $972.00 million during the quarter, compared to the consensus estimate of $955.75 million. During the same period in the previous year, the business posted ($0.24) earnings per share. Gray Media’s revenue was up 29.8% compared to the same quarter last year.
Here are the key takeaways from Gray Media’s conference call:
- Political advertising hit a record: Q3 political revenue was $198 million, above guidance, and Gray expects $630 million–$640 million through Election Day for 2026, surpassing its prior record.
- Debt reduction and refinancing are expected to lower interest costs: Gray plans to pay down another $175 million–$200 million of debt by year-end and anticipates at least $40 million in lower interest costs in 2027.
- Retransmission revenue is showing improvement: Q3 net retransmission revenue was $150 million, at the high end of guidance, and management expects gross and net retransmission revenue to grow in 2027.
- Underlying core advertising remains pressured: Q3 core ad revenue excluding acquisitions was down mid-single digits, while Q4 is pacing down low to mid-single digits amid political crowd-out and macroeconomic softness. Management said early Q1 same-station pacing is positive, though comparisons are challenging.
- Digital revenue and acquisition integration are progressing: Digital revenue grew 12% year over year, and Gray expects acquired-station expenses to decline as integration continues, with the benefits largely flowing through in 2027.
Gray Media Trading Up 0.3%
Gray Media stock traded up $0.01 during mid-day trading on Friday, hitting $4.89. 1,537,795 shares of the company’s stock were exchanged, compared to its average volume of 856,003. The firm has a market capitalization of $504.09 million, a P/E ratio of -8.02, a PEG ratio of 0.09 and a beta of 1.01. Gray Media has a fifty-two week low of $3.55 and a fifty-two week high of $6.43. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 2.73. The company’s 50 day simple moving average is $4.65 and its 200-day simple moving average is $4.59.
Gray Media Announces Dividend
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 31st. Investors of record on Tuesday, December 15th will be paid a dividend of $0.08 per share. This represents a $0.32 annualized dividend and a yield of 6.5%. The ex-dividend date of this dividend is Tuesday, December 15th. Gray Media’s dividend payout ratio (DPR) is presently -52.46%.
Gray Media News Roundup
Here are the key news stories impacting Gray Media this week:
- Positive Sentiment: Full-year 2026 revenue guidance is $3.7 billion, above the $3.6 billion consensus estimate. Fourth-quarter revenue guidance of $1.1 billion is in line with expectations. Gray Media Announces Third Quarter Financial Results
- Positive Sentiment: Third-quarter revenue was $972 million, topping analysts’ $955.75 million estimate and rising 29.8% year over year. Gray Media third-quarter earnings report
- Positive Sentiment: Gray Media authorized a quarterly cash dividend of $0.08 per share, payable December 31 to shareholders of record on December 15. Gray announces quarterly cash dividend
- Negative Sentiment: Third-quarter EPS was $0.66, below analysts’ estimates of roughly $0.84–$0.86. The earnings shortfall may weigh on sentiment despite the revenue beat; the company also reported a negative net margin. Gray Media misses Q3 earnings estimates
Analyst Ratings Changes
GTN has been the subject of several analyst reports. Wall Street Zen lowered Gray Media from a “buy” rating to a “hold” rating in a research report on Saturday. Weiss Ratings downgraded shares of Gray Media from a “sell (d+)” rating to a “sell (d)” rating in a research report on Friday, October 9th. Finally, Zacks Research downgraded shares of Gray Media from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, October 28th. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Gray Media currently has an average rating of “Hold” and an average price target of $7.88.
Read Our Latest Analysis on GTN
About Gray Media
Gray Media, formerly known as Gray Television, is a multimedia company that owns and operates local television stations and related digital media properties in markets across the United States. Its stations provide local news, weather, sports, public affairs and entertainment programming, while also distributing content through websites, mobile platforms and other digital channels.
The company’s broadcast portfolio includes affiliates of major networks such as ABC, CBS, NBC, FOX and The CW, as well as independent and specialty stations.
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