Sinclair, Inc. (SBGI) to Report Q2 Earnings: What's in Store?
Sinclair, Inc. SBGI is set to report second-quarter 2023 results on Aug 2.
For second-quarter 2023, SBGI expects media revenues between $750 million and $766 million and EBITDA between $84 million and $104 million.
For the quarter, the Zacks Consensus Estimate for loss per share has remained unchanged at 58 cents in the past 30 days. The figure indicates a decline of 1833.33% from the year-ago quarter’s reported figure.
The consensus mark for revenues is pegged at $765.72 million, indicating an 8.52% decline from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters and missed once, the average surprise being 290.07%.
Let’s see how things have shaped up for this announcement.
Sinclair, Inc. Price and EPS Surprise
Sinclair, Inc. price-eps-surprise | Sinclair, Inc. Quote
Factors to Consider
The company expects media revenues and adjusted EBITDA for second-quarter 2023 to decline compared with the figures of second-quarter 2022. This decrease is mainly attributed to the absence of political ad spending, the timing of distributor renewals, persistently high subscriber churn and overall macroeconomic challenges.
In the to-be-reported quarter, Sinclair completed the reorganization of its holding company. This is likely to have provided a greater flexibility for value creation.
Sinclair Broadcast Group's free over-the-air multicast television networks, Comet, CHARGE! and TBD, have revealed their latest series acquisitions for the upcoming broadcast season primetime lineups. These acquisitions include both well-known major TV franchises and original series. Such partnerships are expected to have boosted the top line in the to-be-reported quarter.
SBGI reported a strong liquidity profile of approximately $1.3 billion as of Mar 31, 2023. It is expected to remain steady in the coming quarters with no debt maturities for more than three years.
Compulse has introduced a new product called Compulse Performance TV. This innovative solution offers a more intelligent approach to purchasing, managing, optimizing and measuring over-the-top campaigns across various device types. It is expected to have boosted the top line in the to-be-reported quarter.
However, SBGI has been witnessing increased media expenses due to annual compensation step-ups, the timing of tennis tournaments and investments in technology. The rising expenses are expected to have kept margins under pressure in the to-be-reported quarter.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here as you can see below.
SBGI currently has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some other stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Itron ITRI has an Earnings ESP of +7.31% and sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Itron is scheduled to release second-quarter 2023 results on Aug 3. The Zacks Consensus Estimate for ITRI’s earnings is pegged at 31 cents per share, suggesting a jump from the prior-year quarter’s reported figure of 7 cents.
CACI International CACI has an Earnings ESP of +2.36% and a Zacks Rank #2 at present.
CACI is set to report its fourth-quarter fiscal 2023 results on Aug 9. The Zacks Consensus Estimate for CACI’s earnings is pegged at $4.85 per share, suggesting growth of 6.8% from the prior-year quarter’s reported figure.
Docebo DCBO has an Earnings ESP of +6.67% and has a Zacks Rank #3 at present.
Docebo is set to report its second-quarter fiscal 2023 results on Aug 10. The Zacks Consensus Estimate for DCBO’s earnings is pegged at 8 cents per share. The company reported a loss of 5 cents per share in the year-ago quarter.
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