The Gory Details of Nexstar Broadcasting Group's Earnings Miss

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Nexstar Broadcasting Group (NAS: NXST) reported earnings on March 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Nexstar Broadcasting Group met expectations on revenue and whiffed on earnings per share.

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

Margins dropped across the board.

Revenue details
Nexstar Broadcasting Group chalked up revenue of $86.2 million. The one analyst polled by S&P Capital IQ looked for a top line of $85.9 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $97.1 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 $0.11. The one earnings estimate compiled by S&P Capital IQ anticipated $0.13 per share. GAAP EPS of $0.11 for Q4 were 78% lower than the prior-year quarter's $0.49 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 77.3%, 200 basis points worse than the prior-year quarter. Operating margin was 21.0%, 950 basis points worse than the prior-year quarter. Net margin was 3.8%, 1,090 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $79.1 million. On the bottom line, the average EPS estimate is -$0.07.

Next year's average estimate for revenue is $362.1 million. The average EPS estimate is $0.72.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 24 members out of 35 rating the stock outperform, and 11 members rating it underperform. Among four CAPS All-Star picks (recommendations by the highest-ranked CAPS members), one gives Nexstar Broadcasting 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 Nexstar Broadcasting Group is buy, with an average price target of $12.00.

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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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