Gray Television’s second quarter results were received positively by the market, as management highlighted several factors shaping performance. The company attributed the year-on-year revenue decline primarily to continued softness in core advertising, particularly in the automotive segment, but noted better-than-expected contributions from legal, entertainment, and digital categories. CEO Hilton Howell emphasized, “Political advertising finished well above our expectation for an off-cycle year,” with legal advertising growing at double-digit rates and digital revenue up 8%. Operational cost discipline also played a role, with expenses held flat compared to the prior year.

Is now the time to buy GTN? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Gray Television’s Q2 Earnings Call

• Dan Kurnos (The Benchmark Company) asked about the likelihood of additional M&A activity. CEO Hilton Howell stated the immediate focus is on integrating recent deals, with no current plans for further transactions but openness to future opportunities.
• Steven Cahall (Wells Fargo) questioned the leverage improvement from M&A and the impact of the WANF affiliation change. CFO Jeff Gignac confirmed the quarter-turn reduction in leverage includes anticipated synergies and that WANF’s revenue mix will shift toward advertising.
• Craig Huber (Huber Research Partners) sought clarity on the rationale behind the CBS affiliation change in Atlanta. Chief Legal Officer Kevin Latek explained it was a long-expected industry move, independent of recent events, and management feels prepared for the transition.
• Alan Gould (Loop Capital) pressed for a timeline and magnitude of leverage reduction over the next political cycles. Gignac declined to provide a specific number but reiterated the company’s commitment to getting leverage “back below 4x.”
• Eli Lapp (BMO) queried the speed of synergy realization and the role of transaction size in deleveraging. Management affirmed synergies are recognized quickly after closing and described the preference for duopolies due to lower integration risk.

Catalysts in Upcoming Quarters

For the remainder of 2025, our analysts will closely monitor (1) the successful integration and performance of newly acquired stations and duopolies, (2) the impact of the WANF affiliate change on advertising and retransmission revenues, and (3) the trajectory of core advertising trends in key categories such as automotive and legal. Execution on cost control, further deleveraging, and any additional regulatory changes will also be important indicators of future progress.

Gray Television currently trades at $6.17, up from $4.17 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).

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