Do Nexstar (NXST) Dividend Hikes and Buybacks Reveal Strength or Mask Pressures on Growth?

• Nexstar Media Group recently reported its second-quarter 2025 earnings, announcing sales of US$1.23 billion and net income of US$97 million, alongside a new quarterly dividend of US$1.86 per share and continued share buybacks.
• This sustained focus on returning value to shareholders, through both dividends and substantial share repurchases, highlights Nexstar’s commitment to robust capital allocation amid fluctuating earnings performance.
• We’ll look at how Nexstar’s ongoing buybacks and dividend growth influence its earnings outlook and long-term investment narrative.

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Nexstar Media Group Investment Narrative Recap

To be a shareholder in Nexstar Media Group, you have to believe in the value of trusted local news, the resilience of broadcast media, and Nexstar's ability to actively return capital even as linear TV faces pressure. The latest results, though showing lower revenue and net income year-over-year, do not materially impact the near-term catalyst of upcoming political advertising cycles, but do highlight that persistent subscriber attrition remains the most significant risk to the stability of distribution and ad revenues.

Among recent announcements, Nexstar’s ongoing share buyback is particularly relevant as it reinforces management’s commitment to capital returns during earnings volatility. Over the past quarter, the company repurchased more than 311,000 shares for US$50 million, which underscores the potential for enhanced earnings per share even with fluctuating top-line performance.

On the other hand, investors should be aware of the continuing risk of subscriber losses and the impact this could have on...

Read the full narrative on Nexstar Media Group (it's free!)

Nexstar Media Group's narrative projects $5.3 billion revenue and $691.7 million earnings by 2028. This requires a 0.3% annual revenue decrease and a $85.7 million earnings increase from $606.0 million today.

Uncover how Nexstar Media Group's forecasts yield a $214.56 fair value, in line with its current price.

Exploring Other Perspectives

Seven Simply Wall St Community members estimate Nexstar’s fair value between US$124.65 and US$496.19 per share. With many viewing political advertising as the next driver, consider how shifts in distribution trends could affect future results.

Explore 7 other fair value estimates on Nexstar Media Group - why the stock might be worth 41% less than the current price!

Build Your Own Nexstar Media Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Nexstar Media Group research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Nexstar Media Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Nexstar Media Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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