Nexstar Earnings: Revenue Hits Record Levels Despite Weak National Advertising

Nexstar posted a mixed start to 2023 as continued erosion in advertising spending weighed on the top line. The expected decline in political advertising revenue was compounded by an 8.5% decrease in core advertising. Despite continuing headwinds for core advertising, we expect distribution revenue growth from renewals along with earlier-than-usual political advertising spending to help stabilize the overall outlook for 2023. We are maintaining our $205 fair value estimate.