Sinclair Broadcast Group said Thursday it expects media revenue of about $721 million for the second quarter, results that would beat Wall Street estimates.
The Hunt Valley broadcaster announced preliminary financial results Thursday, a day after David D. Smith, Sinclair’s executive chairman, bought company stock valued at nearly $21.8 million.
Smith acquired 395,000 shares at an average price of $55.10 each on Wednesday, according to a Securities and Exchange Commission filing. Insiders often buy stock in their companies if they believe the stock is undervalued or in advance of a merger or acquisition. Shares of Sinclair rose $1.56 Thursday to close at $58.92 each.
Sinclair announced in May it will partner with the owner of The Weather Channel to buy 21 regional sports networks and Fox College Sports from The Walt Disney Co. for $10.6 billion.
The broadcaster said earlier this week it plans to fund part of the purchase price through net proceeds of term loans raised by two wholly owned subsidiaries, Diamond Sports Group LLC and Sinclair Television Group Inc.
Diamond Sports plans to raise $3.3 billion in term B loans due 2026, and Sinclair Television plans to raise $700 million of incremental term B loans due 2026. Sinclair Television also will amend some terms of its existing bank credit facility, Sinclair said.
The preliminary media revenues announced Thursday, for the three months that ended June 30, would be in line with the company’s previous outlook of $716 million to $725 million. Analysts were expecting media revenues of $712.9 million.