Revenue Analysis
Total and Operating Revenue: NXST’s total revenue has shown variable trends across the quarters, starting from $1.30 billion in December 2023, with a slight decrease observed in September 2023 to $1.13 billion, followed by consistent increments in subsequent quarters reaching $1.26 billion in June 2023 and peaking at $1.26 billion in March 2023.
Gross Profit Margins: The Gross Profit for the company followed a similar trend, starting at $764 million in December 2023, and diminishing to $595 million in September 2023. It then increased to $703 million and $719 million in the next two quarters, respectively.
Cost Management
Cost of Revenue: The cost of revenue remained relatively stable, oscillating around $540 million throughout the reported periods.
Operating Expense: The operating expense depicted a decreasing trend from $525 million in December 2023 to $515 million by March 2023.
Total Expenses: Total expenses started at $1.07 billion in December 2023, slightly reduced to $1.03 billion in March 2023.
Profitability Analysis
EBITDA: EBITDA has seen an overall ascending trend from $472 million in December 2023 to $486 million by March 2023.
Operating Income: Operating income increased significantly from $231 million in December 2023 to $204 million by March 2023.
Pretax Income: Pretax income surged from $147 million in December 2023 to $130 million by March 2023.
Net Income: Net income began at $114 million in December 2023 and stayed rather consistent, culminating at $111 million in March 2023.
Cash Flow Indicators
Reconciled Depreciation: The depreciation expense observed a high of $262 million in June 2023 and slightly declined to $249 million by March 2023.
Interest Expense: Interest expenses were fairly constant, ranging around $115 million.
Taxation
Tax Rate: The tax rate has been adjusted from 32.6% in December 2023 to nearer 32% in the subsequent quarters.
Tax Provision: Tax provision ranged from $48 million in December 2023 decreasing to $42 million by March 2023.
Tax Effect Of Unusual Items: There was a notable tax effect from unusual items amounting to approximately $-11.4 million in December 2023, with no unusual items noted afterward.
Shareholder Metrics
Diluted and Basic EPS: Diluted EPS showed an increase from 0.7 in September 2023 to 2.97 by March 2023, similar trends were observed in the Basic EPS.
Average Shares: There was a slight increase in both diluted and basic average shares, indicating possible share issuances or lower share buybacks.
Net Income Available to Common Stockholders: This remained consistent with the net income figures.
Conclusion
NXST has shown resilience with a steady increase in revenue and profitability metrics across the periods analyzed. The management has effectively controlled costs, and improvements in gross profit margins and operational income highlight strong operational performance. Continuous monitoring of tax obligations and strategies to enhance shareholder returns through improving EPS will be crucial.