They are saying linear TV is dead, but don’t tell that to Nexstar Media Group (NASDAQ:NXST). The TV-broadcasting company just posted record revenue in its first fiscal quarter — and simply topped earnings estimates.

Nexstar is the most important owner of TV stations within the country, and it also owns various networks, including the CW and the Food Network. The stock was amongst Thursday’s top gainers, popping 6% to $178 per share. The stock has returned 11% 12 months so far.

Record revenue in Q1

Nexstar owns greater than 200 TV stations in 117 U.S. markets, reaching 220 million people or about 68% of the population. It also owns various networks, including the CW, the Food Network, NewsNation, Antenna TV, and Rewind TV. Nexstar also owns the political publication The Hill and WGN Radio in Chicago.

In the primary quarter, the firm generated $1.28 billion in revenue, roughly according to expectations and up 2% 12 months over 12 months. Nexstar’s revenue received a lift from distribution income, which its TV stations generate from cable operators and other platforms for retransmission and thru carriage fees, affiliation fees, and spectrum. In truth, the corporate’s distribution revenue jumped to an all-time high for the primary quarter, rising 4.5% to $761 million.

Nexstar’s revenue was also buoyed by several other aspects, including a latest multi-year agreement with KAZT-TV in Phoenix, the nation’s Eleventh-largest television market, where it also added a CW network affiliation. The corporate also transitioned all 117 of its markets to its own national sales organization from third-party representation. As well as, Nexstar saw prime-time rankings growth on the CW within the last quarter.

All of those revenue boosts helped Nexstar dramatically increase its earnings, notching net income of $167 million, up 90% 12 months over 12 months. Its earnings soared to $5.16 per share, which smashed the consensus estimates of $3.97 per share.

The earnings spike was because of higher revenue but in addition a 4% reduction in operating expenses driven by reduced amortization of the printed rights on the CW and a $40 million gain on the sale of its ownership interest in Broadcast Music Inc.

Nexstar was also in a position to trim the losses on the CW, the nation’s fifth-largest broadcast network, by $50 million, and reduce its debt by nearly $30 million. Moreover, the corporate’s net income margin rose to 13% from 7% in the identical quarter a 12 months ago.

Political season ahead

Nexstar has a whole lot of momentum heading right into a presidential election this fall, when it typically sees an enormous spike in political promoting. Last quarter, promoting revenue was down 1% to $512 million, but management is expecting a windfall in ad revenue for the remaining of this 12 months.

“Looking ahead, we remain confident that Nexstar will deliver one other strong 12 months of monetary results and expect to construct momentum through 2024, given the anticipated record-level of political spending this presidential election cycle,” said Chairman and CEO Perry Sook within the earnings report.

Within the last presidential election 12 months, Nexstar recorded a $247 million increase in core ad revenue, and its political ad revenue jumped from $52 million in 2019 to $508 million in 2020. Thus, Nexstar could see the same jump this 12 months.

The CW also signed a seven-year cope with NASCAR to broadcast its Xfinity Series starting this fall, which should provide more fuel for Nexstar’s revenue.

Nexstar is a consensus Buy amongst analysts with a median price goal of $200 per share. It’s also relatively low cost with a P/E ratio of 17 and a forward P/E of 6. It’s a Buy immediately.