Does Nexstar’s (NXST) Earnings Dip and Completed Buyback Reveal a Shift in Growth Priorities?

• Nexstar Media Group recently reported its third quarter 2025 earnings, revealing sales of US$1,198 million and net income of US$70 million, both lower than the same period last year.
• This update also confirmed the company did not repurchase any shares in the latest quarter, finalizing its previously announced buyback program with a total of 9,658,089 shares repurchased for approximately US$1.59 billion.
• We will explore how Nexstar's recent earnings decline may influence its investment outlook and projected earnings growth trajectory.

Explore 27 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research.

Nexstar Media Group Investment Narrative Recap

To be a Nexstar Media Group shareholder, one needs confidence in the resilience of local television and the company’s ability to balance cyclical shifts in political advertising, digital expansion, and regulatory developments. The recently reported third quarter earnings decline, while notable, does not materially alter the short-term catalyst of anticipated political ad spend, but it does highlight ongoing risks tied to declining linear TV audiences and advertising revenue volatility.

Among the recent announcements, the company’s completion of its large-scale share repurchase program stands out. With over US$1.59 billion spent to buy back nearly 30% of its shares, this capital allocation decision has now concluded, removing a key support for earnings per share growth that some investors may have relied on ahead of major political cycles and ongoing industry shifts.

Yet, in contrast to the steady dividend and completed buyback, investors should be aware that...

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

Nexstar Media Group is projected to deliver $5.3 billion in revenue and $693.6 million in earnings by 2028. This outlook assumes an annual revenue decline of 0.3% and a $87.6 million increase in earnings from the current level of $606.0 million.

Uncover how Nexstar Media Group's forecasts yield a $231.89 fair value, a 26% upside to its current price.

Exploring Other Perspectives

Seven members of the Simply Wall St Community estimate Nexstar’s fair value from US$124.65 to US$771.09 per share. While projections of rising political ad spending offer optimism, continued audience declines for traditional TV raise important questions about the company’s earnings stability and long-term growth.

Explore 7 other fair value estimates on Nexstar Media Group - why the stock might be worth 32% 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 4 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.

Contemplating Other Strategies?

Our daily scans reveal stocks with breakout potential. Don't miss this chance:

• These 15 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.
• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• AI is about to change healthcare. These 31 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com