Shares of Gray Television saw a significant increase of more than 21% following the announcement of their second-quarter results. The local TV broadcaster reported a rise in core advertising revenue, particularly driven by autos-related advertising. While the stock is still down over 5% for the year, it remains notable considering the overall gain of nearly 18% for the S&P 500.
Gray Television's second-quarter sales stood at $813 million, which, although a 6% decrease from the previous year, surpassed analysts' expectations of $797.2 million. Notably, when compared to the same period in 2021, sales experienced an impressive 49% growth.
The company reported a quarterly loss of $9 million or 10 cents per share, representing a decline compared to earnings of $86 million or 91 cents per share in the corresponding period last year. However, this loss was narrower than analysts' predicted loss of 19 cents per share, as reported by FactSet.
Strong Core Advertising Revenue Growth
Gray Television witnessed a notable 4% increase in core advertising revenue during the quarter. This growth was primarily driven by the rise in automobile-related advertising of the same percentage. It is worth noting that core advertising revenue excludes political advertising.
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