Sinclair Broadcast Group Meets on Revenues, Misses on EPS

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Sinclair Broadcast Group (NAS: SBGI) reported earnings on Feb. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Sinclair Broadcast Group met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
Sinclair Broadcast Group recorded revenue of $212.8 million. The four analysts polled by S&P Capital IQ predicted revenue of $211.3 million on the same basis. GAAP reported sales were 5.7% lower than the prior-year quarter's $225.6 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.28. The four earnings estimates compiled by S&P Capital IQ anticipated $0.32 per share. GAAP EPS of $0.28 for Q4 were 35% lower than the prior-year quarter's $0.43 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 61.0%, 980 basis points worse than the prior-year quarter. Operating margin was 29.8%, 840 basis points worse than the prior-year quarter. Net margin was 10.7%, 400 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $220.3 million. On the bottom line, the average EPS estimate is $0.33.

Next year's average estimate for revenue is $950.1 million. The average EPS estimate is $1.48.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 122 members out of 131 rating the stock outperform, and nine members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Sinclair Broadcast Group a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sinclair Broadcast Group is buy, with an average price target of $12.67.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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