Shares of TV station operator *Gray TV got disconnected.
(*a broadcast company, which owns and/or operates television stations and digital assets in markets throughout the United States)
INSIGHT: It owns and operates television stations in 44 television markets broadcasting 139 program streams including 76 affiliates of the Big Four networks (ABC, CBS, NBC and FOX).
The shares of the company have dropped down to 19% when the company had reported 2015-2Q earnings and costs have been inclining. The shares however have been reported to fall off at 7.8% at that time.
Not to mention, revenues during Q had climbed at 34% with US$ 143.5 million which has set a new 2Q record enabling it to translate the net income of US$ 12.1 million at US$ 0.17.share. The guidance however still spooked the investors while both top and bottom line results had proved Wall Street analysis wrong of US$ 142.5 million with US$ 0.13/share. The business’s revenue for the quarter was up 33.9% compared to the same quarter **last year.
(During the same quarter in the previous year, the company posted $0.03 EPS)
Gray Television is expecting the 3Q broadcasting expenses to rise due to certain valid reasons. One of the top most reasons for it is to raise payrolls and benefit costs of employees along with network fee. That certainly would exert some pressure on bottom line even if the revenue rate rises at 8%-10%. As it is a off year of the two year election cycle, the company expectations of political advertising revenue for a decline in 91% is prominent.
Gray’s Director Hugh Norton sold 7,500 shares of the business’s stock in a transaction on 14 July 2015. The shares were sold at an average price of $17.12, for a total transaction of US$ 128,400.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission
UPDATE: Moreover, Gray acquired five stations during the quarter, and disposed of two.
