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Nexstar Media Group Inc NXST

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Nexstar's First Quarter Boosted by Recovery in Local Ad Market

Neil Macker, CFA Senior Equity Analyst

Analyst Note

| Neil Macker, CFA |

Nexstar reported record net revenue and adjusted EBITDA in the first quarter with both metrics above FactSet consensus. Core advertising revenue returned to prepandemic levels as that segment was down only 1.4% overall this quarter compared with the first quarter of last year and rose 2% year over year on a same-station basis, indicating the start of the recovery as vaccination rates increase and local markets reopen. We are maintaining our no-moat rating and our $146 fair value estimate.

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Company Profile

Business Description

Nexstar is the largest television station owner/operator in the United States, with 197 stations in 115 markets. Of its 197 full-power stations, 158 are affiliated with the four national broadcasters: CBS (50), Fox (43), NBC (35), and ABC (30). The 2019 merger with Tribune made Nexstar the top broadcast affiliate for both Fox and CBS as well as the number-two partner for NBC and number three for ABC. The firm now has networks in 15 of the top 20 television markets and reaches 69 million television households. Nexstar also owns WGN, a nationwide pay-television network, and a 31% stake in Food Network and Cooking Channel.

Contact
545 E. John Carpenter Freeway, Suite 700
Irving, TX, 75062
T +1 972 373-8800
Sector Communication Services
Industry Broadcasting
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2020
Stock Type Aggressive Growth
Employees 12,412

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