Nexstar Posts Strong Q1 Results; Increased Scale Will Help Drive 2022 Political Ad Growth

Nexstar reported a strong first quarter, as revenue and adjusted EBITDA beat FactSet consensus projections. Core advertising was up 4% year over year, led by services and goods, which more than offset the ongoing weak automotive ad spending. Distribution revenue improved 7.5% as the firm benefited from higher renewals in 2021. Management expects these renewals to continue to generate mid- to high-single-digit growth in 2022 and growth acceleration in 2023. We are maintaining our no-moat rating and $175 fair value estimate.