Gray Television Inc . (NYSE:GTN) shares tumbled to a 52-week low, touching down at $4.15 as the market closed yesterday. This latest dip underscores a challenging year for the media company, which has seen its stock price plummet by 39.23% over the past year. Investors have been cautious, reacting to a combination of industry-wide headwinds and company-specific challenges that have weighed heavily on Gray Television's financial performance. The 52-week low represents a significant drop for a stock that has struggled to regain its footing in a rapidly evolving media landscape, leaving shareholders concerned about the company's future trajectory.
In other recent news, Gray Television reported its third-quarter 2024 results, which saw a miss on both earnings and revenue estimates. The broadcasting company posted adjusted earnings per share of $0.86, falling short of analyst expectations of $0.95. Revenue was reported at $950 million, missing the consensus estimate of $967.49 million.
Gray Television experienced a 565% increase in political advertising revenue in Q3, reaching $173 million, albeit slightly below the company's own expectations. Core advertising revenue grew 1% year-over-year to $365 million, while retransmission consent revenue declined 2% to $369 million.
The company has now revised its full-year 2024 political advertising revenue projection to $495-500 million and anticipates a reduction in net debt by approximately $500 million. However, Gray Television forecasts a decline in fourth quarter core advertising revenue by about 11% year-over-year, citing political ad displacement and other factors. These are among the latest developments for the company.
InvestingPro Insights
Despite Gray Television's (GTN) recent stock performance challenges, InvestingPro data reveals some intriguing aspects of the company's financial position. As of the last twelve months ending Q2 2024, GTN's Price to Book ratio stands at a low 0.27, suggesting the stock might be undervalued relative to its book value. This aligns with an InvestingPro Tip highlighting that GTN is "Trading at a low Price / Book multiple."
Additionally, the company boasts a notable dividend yield of 5.53%, which could be attractive for income-focused investors. This generous yield is complemented by another InvestingPro Tip indicating that GTN has "Liquid assets exceed short term obligations," potentially providing some financial stability amidst market volatility.
It's worth noting that GTN has shown a strong return over the last three months, with a price total return of 31.24%. This recent positive momentum contrasts with the 52-week low mentioned in the article and may indicate a potential turnaround in investor sentiment.
For readers interested in a more comprehensive analysis, InvestingPro offers 8 additional tips for Gray Television, providing a deeper understanding of the company's financial health and market position.
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