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January 5, 2010
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Sinclair Broadcast Group Inc. (SBGI) on Monday lifted its broadcast revenue guidance for the fourth quarter of 2009. The company stated that it now expects broadcast revenues to reach approximately $153.8 million, compared to the previous forecast of $143.3 million to $146.3 million. However, the revised guidance still represents a decline of 6.5% from $164.4 million recorded in the year-ago quarter.
Sinclair is a diversified broadcasting company that owns or provides programming services pursuant to local marketing agreements to 58 television stations across 35 markets in the U.S. The company, which reaches approximately 22% of U.S. television households, is affiliated with all major networks.
The Hunt Valley, MD-based company attributed the upgraded outlook to better-than-expected advertising revenues from the auto sector. Sinclair stated that increased spending by dealers and domestic manufacturers in the industry have boosted quarterly results. Accordingly, the company now anticipates auto advertising revenue to decline by 4% in the fourth quarter, compared to the earlier prediction of a decline by high-teen percentage points.
Sinclair reported third-quarter earnings of 18 cents per share in November, which topped the Zacks Consensus Estimate by 10 cents primarily due to management’s stringent cost containment initiatives. The Zacks Consensus Estimate on the company’s full-year earnings is currently pegged at 48 cents per share, which has remained constant over the past 2 months.
Sinclair also stated that its affiliation agreements with the ABC Network for nine stations have been extended by a month, while negotiations between the two companies continue. The agreements were due to expire on Dec 31, 2009.
Shares of Sinclair jumped nearly 13% after the positive news to close at $4.63 yesterday on the Nasdaq.
Read the full analyst report on "SBGI"
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