Nexstar Media Group reported inline but mixed results for 1Q18. Importantly, the company reiterated its 2018 guidance for $13.10 in average annual free cash flow per share in 2018 and 2019. The political cycle leads investors in local TV broadcasters to look at valuation on a two year basis. Normally, Northlake tries to avoid a […]
Nexstar Media Group (NXST) reported good 4Q17 earnings with strength in political and digital advertising offsetting slightly worse than expected growth in retransmission fees. Guidance for 2018 and 2019 was limited to average annual free cash flow. At $600 million per year, it was below street expectations. The culprit appears to be timing of renewals […]
TV stocks have had a good rally in the past week for the first time since May. Among Northlake positions, this includes Disney (DIS), CBS Corporation (CBS), and Nexstar Media Group (NXST). Each has rallied between 5-10% off of at or near 2017 lows. The challenges facing TV have metastasized this year. The issues are […]
Our timing on adding Sinclair Broadcast Group (SBGI) to Northlake’s portfolio proved poor. Over the past few weeks, we sold SBGI at a loss and reinvested in Nexstar Media Group (NXST). Like SBGI, NXST owns local TV stations around the country, generally in small to mid-size markets. The bull case is also similar: extraordinarily high […]
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