- Earnings per Share (EPS) reported at -$0.71, missing the estimated EPS of -$0.33.
- Revenue declined by 7% year-over-year to $772 million, slightly below the forecast.
Gray Media, Inc. (NYSE: GTN) is a prominent player in the broadcasting industry, known for its extensive network of television stations across the United States. The company focuses on delivering local news, weather, and sports content, which has been a key driver of its audience engagement. GTN-A, a stock associated with Gray Media, is traded on the NYSE and is closely watched by investors for its financial performance and market trends.
On August 8, 2025, GTN-A reported its earnings before the market opened, revealing an earnings per share (EPS) of -$0.71. This figure was notably lower than the estimated EPS of -$0.33, indicating a larger-than-expected loss. The company’s actual revenue for the period was $772 million, slightly below the estimated $774.2 million. This revenue figure also represents a 7% decline compared to the same period in 2024, as highlighted by Gray Media’s financial results for the second quarter ending June 30, 2025.
Despite the revenue decline, Gray Media’s core advertising revenue fell by 3% to $361 million, aligning with the company’s updated guidance. Additionally, retransmission consent revenue saw a slight decrease of 1%, totaling $369 million. These declines reflect the challenges faced by the company in maintaining its revenue streams. However, Gray Media continues to enhance its local content offerings, particularly in broadcasting professional and collegiate sports, while optimizing its cost structure and strengthening its balance sheet to increase financial flexibility.
GTN-A’s financial metrics suggest a potentially undervalued stock. The price-to-sales ratio stands at about 0.14, suggesting that the stock is trading at a low price relative to its sales. The enterprise value to sales ratio is around 0.16, and the enterprise value to operating cash flow ratio is approximately 0.71, both of which indicate a potentially undervalued company. The earnings yield is a substantial 28.67%, reflecting a strong return on investment.
However, there are some concerns regarding the company’s liquidity. The debt-to-equity ratio is low at 0.054, indicating a conservative use of debt in the company’s capital structure. Yet, the current ratio is 0.91, which may suggest potential liquidity concerns as it is below the standard threshold of 1. This could imply that the company might face challenges in meeting its short-term obligations, despite its efforts to strengthen its balance sheet.
