By Shares Plummet as Retransmission Fees Decline
In a recent announcement, Gray Television revealed a lower-than-expected revenue forecast for the current quarter. The primary reason behind this revision is the anticipated decrease in retransmission fees, as more and more Americans move away from traditional cable subscriptions.
Stock Performance Takes a Hit
Following this news, Gray Television’s stock price experienced a significant drop of over 23%, closing at $6.09. This downturn reflects a startling decrease of more than 52% in share value over the past year.
Revenue Expectations Disappoint Analysts
Gray Television’s first-quarter revenue outlook of $810 million to $830 million fell short of the $871 million estimate gathered by analysts surveyed by FactSet. The projected decrease in retransmission revenue, coupled with softer political advertising figures, contributed to this disappointing forecast.
Financial Results for the Fourth Quarter
In terms of financial performance, Gray Television reported a loss of 24 cents per share for the fourth quarter. This figure was wider than the expected 16 cents per share predicted by analysts. However, quarterly revenue slightly exceeded expectations, coming in at $864 million compared to the projected $863.3 million.
Despite these challenges, Gray Television remains determined to navigate through these rough waters and adapt to the evolving media landscape.
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